City status is a symbolic and legal designation given by a monarch, national or subnational government. A municipality may receive city status because it already has the qualities of a city, or because it has some special purpose.
Historically, city status was a privilege granted by royal letters of patent. Sovereigns could establish cities by decree, e.g. Helsinki, regardless of what was in the location beforehand. Also, with the establishment of federal governments, the new capital could be established from scratch, e.g. Brasília, without going through organic growth from a village to a town.
Historically, British city status was often conferred on settlements with a diocesan cathedral; in more recent times towns apply to receive city status by letters patent at times of national celebration. Similarly, city status in Italy is granted by decree of the President (and before 1946 by the King of Italy) in recognition of historical, cultural or demographic merit. In the United States city can be used for much smaller settlements.
The Government of China in 1982–1997 upgraded many counties to cities by decree, thereby increasing their city count from 250 to more than 650 during this period. Almost 15% of the counties in China became cities. The new "cities" may include large rural areas as well as urban areas. The upgrade was considered desirable by local governments because the new status provides additional powers of taxation and administration, the right to expand the size of government, and an increase in the proportion of land which could be converted from agriculture to buildings.[1][2]