Abstract: From the township economy in regions south of the Yangtze River in the late Ming and early Qing Dynasties to the concession port trade and the urbanization in Shanghai, the cultural space of Suzhou pingtan(an art form of storytelling ballad singing in Suzhou dialect) teahouses has been strongly influenced by social changes as well as literary and artistic creation. As a theoretical tool of urban cultural research, the third space theory emphasizes spatial diversity, openness, negotiation and dialogue, which has great significance for cultural diversity and cultural power strategy of an international metropolis. Financial allocation from the cultural sector is a respectable effort for conserving and revitalizing traditional culture, but its spatial practice cannot produce culture vitality since it fails to provide internal motivation for cultural competence and creation. The cultural sector should consider how to wisely use the financial resources to activate cultural space vitality and creative enthusiasm.

Key words: the third space, Suzhou pingtan, storytelling teahouse, culture vitality