European squares have represented the heritage of the European excellence and culture since ancient times. In 2026, Milan Piazzale Loreto will be transformed into one of the most important green squares in Milan. China's urbanization is proceeding at an unprecedented speed, and Shanghai, in particular, has rich and valuable practices in urban renewal. However, there are few comparative studies on the renewal projects of large city squares in Milan and Shanghai. Therefore, this article explores the importance of renewal projects of large city squares by comparatively analyzing the similarities and differences between Milan Piazzale Loreto and Shanghai Wujiaochang. The evidence of the study suggests that the renewal projects of large city squares have great influence on promoting sustainable urban prosperity and low-carbon transformation.