My wife is Chinese and I'm a foreigner. I've been in Shanghai for almost 10 years.
Yesterday we went to the buy presents in the "fake market" for gifts on Nanjing Rd. and Chongqing Rd. It's a 3 story building many foreigners go to to buy cheap fake goods. The seller were really aggressive physically, trying to pull me into their shop. But when my wife refused to buy from one woman, the woman started cursing her using very nasty dirty language (something about "selling her private parts").
As any husband, I cannot bear with my wife being humiliated like this, so I cursed back at the sales woman. This woman than walked up to me screaming and yelling waving her hands and smacking me in the face. When I pushed her back from me, she began yelling that I hit her. In matter of seconds a manacling crowed of around 20-30 people gathered and in a few more seconds they started beating me. There were around 5-7 guys that kicked me and punched me in the face, while others, including that woman threw plastic chairs at me.
Luckily, I managed to escape with bruises, running downstairs with my forehead bleeding (from a chair that hit me). I called the police. They sent in a couple of cops who came upstairs and the whole crowed of Chinese there were grinning and laughing the whole time, while my pregnant wife was completely hysterical trying to ask some other foreigners there to help her. The cops took us together with the woman who started the fight to the local police station and kept us there for more then 4 hours. Their "investigation" included taking testimonies from us and this woman, but there was no security camera in operation at the scene, so the police said there was no way to verify the attack. I also couldn't recognize my attackers, because these violent farmers looked all the same. It ended when the police asked both to give up claims. but it took hours of convincing, because the shameless evil sales woman was me to compensate her (!!!).
In 10 years in China, I have never seen such a case of extreme violence against me as a foreigner. Because these people kept on yelling "da lawoai" - "punch the foreigner". If I had fallen to the ground, they could have killed me right there and than, while there were no witnesses and no one to testify, because they're like corroborating with each other.
This is a rare case, but I'd like to use this opportunity to warn everyone from going to this "fake market" for shopping. It's darn right dangerous. These people that sell you stuff there are like animals. They hate you because you're a foreigner and if you don't want to buy, or haggle without buying, they'll curse you. If you can understand Chinese and you curse back, you're likely to get beaten up. And it's not like you can defend yourself, because there'll be 10 guys coming at you together with punches, kicks and blunt objects from different sides. Forget about the cops helping you also. They'll try to save their asses and save face.
The "fake market" on Nanjing Rd. and Chongqing Rd. is definitely a dangerous, hostile place for foreigners in Shanghai. Just stay away people, for your own personal safety, and boycott this rat infested hell-hole. Shame on the Shanghai government for letting such a disgrace occur in their otherwise civilized city (the cops were saying "you beat people AGAIN?")