Shanghai still has a very high level of commuting by bicycle even though car ownership is booming. There are just so many people there that even at the current rate of car purchases that in 20 years car usage will still be in the minority.
There has been a concerted effort on the part of politicians to get rid of all the bicycles from major roads in order to make room for cars. Recently the city has begun to reverse that decision at least in some ways. They've begun to build bike lanes while at the same as trying to make intersections more efficient for car flow. This may seem reasonable enough as a win-win solution, but from experience in the west you can't really encourage car driving in the city as well as cycling and walking. The current building of bike lanes seems to be a way to marginalize cyclists by shoving them from their current position across the roadway. This is quite the opposite use of bike lanes in western countries where a bike lane is welcomed as breather space by cyclists.