The current status quo in most of the US and Canada is that in large areas nothing but large single family houses are allowed to be built, which forces people into spending thousands a year on their cars to get anywhere. The alternative being proposed is building areas that can have a mix of housing types and uses, so people can live without needing a car to get anywhere, not to stop being from having cars and going places.
I assume your mention of Shanghai is referring to their COVID lockdowns, which I also think were too severe, but as far as I am aware have completely ended. This was also in response to a virus, and has nothing to do with urban design.