In the context of the transformation of informal settlements governance in China, this paper proposes an analytical framework of “spatial inclusion - institutional inclusion - implementation inclusion” based on the concept of inclusiveness, and takes Sao Paulo, Brazil, which is successful in informal settlements upgrading, as an example. Based on the review of the governance process of informal settlements in Sao Paulo, its implementation mechanism of inclusive governance is summarized: in the spatial dimension, a comprehensive governance system has been built, including favela, informal subdivisions, tenements and public housing estates; in the institutional dimension, the formalization of informal housing is promoted by ensuring land use rights, delineating special areas of social interest, obtaining funds from multiple parties, and building a project coordination platform; in the implementation dimension, all-round and whole process strategies have been adopted to improve survival, development, and social conditions. Finally, suggestions are put forward for the governance of informal settlements in China, including improving the spatial pedigree of informal housing, integrating informal housing into the urban public housing system, and adopting informal housing governance countermeasures that pay equal attention to spatial improvement and social development.