Problem with the article is that it is extremely myopic. Shanghai is no more China writ large than Manhattan is the U.S. Reason those shops he went to were empty is that Chinese simply cannot afford to shop at the places Western tourists go to because they do not offer value. The Chinese are all shopping at the equivalent of Wal-Mart and Costco while the tourists are hitting up the equivalents of Armani and Louis Vutton, etc. Can’t go to a party and declare it did while sitting in the parlor while everyone is is outside on the patio cooking up barbecue.
What happens in Shanghai is the symptom. All massive amount of investment into those projects won't produce decent return to salvage original cost and generate profits.
Peasants in rural area won't shop much to offset loss of export revenues. Government could pump in money for a while, creating artificial bubble, which won't last.
It seems that China is following U.S. not only in terms of general banking/gov policy but PR spin as well such as "It is only in Shanghai." Sounds awfully like "It's only in New York and LA."