There are a bunch of parallel conversations spawned from this 2 year old blog post. For reference, here's the area the author talked about in current google maps:

http://maps.google.com/maps?q=Huashan+Road,+Shanghai,+China&...

The locations are all still off and they're consistently off by an offset throughout Shanghai. There might be some deliberate dishonesty by map makers in China, but I don't think this is evidence of it - I think this is just an inaccurate projection. If you want to make bad maps to confuse people - first, that's probably pretty impossible with current information systems, even in China, and second, this would be a really bad attempt at it.