| Summary: | Characteristic towns have emerged along with China’s economic and social development. As a new model of small-town development, they have played an essential role in promoting industrial transformation and upgrade, improving the living environment, and promoting regional innovation and development. Accurate identification of the expansion characteristics of National Characteristic Towns (NCTs) is vital for optimizing the spatial layout of characteristic towns and adjusting the policies of characteristic towns. This study used a dataset on nighttime light to identify expanding NCTs and measure their expansion from 2000 to 2020. In total, 233 expanding NCTs were identified, accounting for 58.25% of the NCTs in China. The areas with the most significant intensity of expansion are primarily located in the East, South, and North economic regions. The critical period of NCTs expansion primarily occurred in the periods 2008–2011 and 2011–2014. Our results show that NCTs are highly consistent with the spatial distribution of urban agglomerations, and the development of NCTs is inherently related to the development of urban agglomerations in the region. The implementation of NCT policies has significantly promoted the development of NCTs in the Central and Western economic regions, which face challenging development issues and differ from those in the Eastern region. The method proposed in this study can effectively identify the ‘hot spots’ of expanding NCTs and the critical periods of their expansion.
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