Yes it should.

It would help if your wife as the new re-entry permit with the statement: "This card is intended for its holder to travel to the mainland of China." . But the legal status of old and new pass is the same, the statement only clarifies existing law for (occassionally feckless) check-in agents.

The fact your wife has both a UK passport and PRC nationality is legal under the 1996 "explanation" of PRC Nationality Law which effectively rewrote the Nationality Law (common from a common law jurisdiction I love the way how State Council "explanations" can override statute law - a PRC colleague essentially told me to read the sources of law in LIFO order and not trace the source of law as I usually would in Australia/HK) http://www.gov.hk/en/residents/immig...se/law.htm#nat.