The Way It Is.

The above picture was taken near center city downtown Shanghai-Puxi side. There are still people living in these "structures". This is not a picture of poverty but one of perseverance. Although the family does not own the property, they are being offered $50,000 per family member to relocate. The government has authorized new residences/office space and all the old buildings are being knocked down. These people believe they can get more money if they stay. Maybe--usually not. They also do not want to leave the old neighborhood and be relocated sometimes many miles away.
This has been happening to much of Shanghai over the years. Knock down the old and build new. The Pudong side ( new financial district) and been completely built up from nothing over the last 15 years. Building has started to slow because of The Expo and new Government policies trying to restrict growth.
The information I got about the residencies was from a local fellow who is now a famous photograper/artist in Shanghai by the name of Gang Fang Wang. He lived in one of these same buildings as a child and I was able to take a walk with him one day and tour a local building  currently being demolished. He told me the funny story of a resourceful newly married couple who found out in 2003 one of the residential blocks was scheduled for demolition and, thus, tenant relocation and remuneration. The fellow had a cousin living there and the couple convinced him to let him move in as part of his " family". Six months later the government made the announcement that the building was going to be destroyed and all people would get $50,000 each to move. The couple readily and happily agreed to accept the offer. They quickly bought their own apartment which has now gone up 4 times in value! Ah, the joyous melding of communism and capitalism. Gotta love it.