Most Chinese cities have spent decades achieving urbanisation. So far, rural urbanisation has shifted to urban renewal. However, the distinction between a rapidly changing social environment and the establishment of an institution has led to the failure of urban renewal policies to sustainably achieve complete transformation through urban modernisation involving many stakeholders. Owing to the top-down political system in China, the formulation and implementation of urban renewal policies are carried out in a closed-loop process in which “decisions are issued by the central government to the local government which gives feedback to the centre”. This seems to affect urban renewal through a transfer of renewal policies in a local area. Therefore, it is essential to explore the differences between the urban renewal policies at different government levels and to analyse these policies in diverse urban contexts with multiple stakeholders. Based on the policy transfer theory, this paper selects 216 core policy texts at the state level and at the level of four first-tier cities (Beijing, Shanghai, Guangzhou, and Shenzhen), and uses the methods of text mining and semantic analysis to form open coding, axial coding, and selective coding. Furthermore, it discusses the policy transfer and impact mechanism of urban renewal policy at different levels with diverse characteristics of policy subsystems. We found that the transfer of urban renewal policy occurred in China through top-down coercive vertical transfer, bottom-up combination reverse transfer, and voluntary horizontal transfer among cities. Finally, we suggest that “inspiration”-type policy transfer is an effective method to promote urban renewal in China.