I can't speak to Shanghai. I've only been to Hong Kong, Beijing, and Zhuhai - just outside of Macau - and with family (my eight year old niece isn't much of a clubber yet).

But all the youth culture I experienced there was thriving. Not exactly going up and asking people their preferred sexuality, but there were plenty of groups that had all the iconography of queerness. There's still a social stigma against queermess that's held over from prior generations. But there also isn't mass shootings or vehicular manslaughter targeting queer communities.

My father in law (a diehard libertarian Cold Warrior type) was taken aback at how clean the cities were and how safe he felt the whole time he was there. Might be due to his overexposure to Western cinema that paints China (and Mexico and Brazil and South Africa and really any country without a critical mass of white people) as dens of vice and violence. But for some reason, having streets devoid of poverty in the US is aspirational. Having them devoid of poverty outside the US is dystopian.

The low homelessness might have something to do with China's stellar public housing policy. The dedication to clean streets and regular maintenance of buildings may have something to do with their prioritization of long term durability over short term profits. And the degree to which they've adopted industrial technology makes these enormous, low cost mixed use urban centers possible. It isn't just random people being wisked away to El Salvador at the whims of a partisan government.

Humans are all different, if you want to consider everyone’s opinion it takes a lot of time (which China did not have in the last few decades).

Chinese civil government doesn't operate in the same adversarial climate as in the US. You don't have Crossfire hosts screaming at each other or Palestine protesters and Zionists brawling on college campuses. You don't have bloggers and AM Radio guys stoking stochastic violence against minorities in order to generate private fortunes or billionaires buying up major publishers in order to suck up to or strong arm political leadership.

Mass Line theory of government tries to be more scientific in it's approach to polling public sentiment, reaching public policy, and mass marketing changes to traditional views. China's approach to domestic reform is slower, more small-c conservative, and focused within the party rather than between parties.

Americans don't understand that system, so it frightens them. But Americans have made an industry of frightening one another. So Sinophobia is just one more buggabo.