Early this spring, the Chinese character for “demolish” (“拆”) showed up in red spray paint on a strip of shops in Shenzhen’s Baishizhou neighborhood. Wang An, 41, has been selling women’s underwear from one of these shops for the last 10 years. “When they knock it down, I guess we’ll just go home to Hubei and grow vegetables,” he joked in April. The spray paint marked Wang’s...

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