I believe many clothes these days are made in places that don't that aren't subjected to the same production quotas as China. In fact, I happen to know a guy that owns one of China's largest denim factories and he has recently shifted his business towards making movies and the like because he can no longer supply Wal Mart at the same profit margins as his SE Asian competitors.

That said, you can still pick up plenty of "designer" clothes here, but almost all are knock-offs. Frankly, I could care less whether my "Paul Smith" or "Zegna" shirts are real, so long as they hold up for a few months and don't irritate my skin. If your standards are the same as mine, then you'll love Shanghai.

I should also point out that, the fake stuff aside, Shanghai's style is pretty progressive; you can definitely find cool clothes here, but if you really want Gap or BR, then you might be better served by your local shopping mall.