But surprised to see it in China where law enforcement is enforced more.
I am hesitant to call this graffiti because that implies it was done under the blackness of night and by someone who doesn't own the property. But it appears to me this indeed was authorized by the restaurant's owner, so they could do with it as they liked.
In contrast to America, where the law is enforced to a T no matter the infraction, the police rarely enforce the law here. I will admit Beijing being the capital that things are different from the rest of the country, and that on some roads there are traffic cops. But as long as harmony is not disrupted the police won't care. If you are a person of interest though there are a million little laws that no one knows about and when they choose to enforce one of them that's how they can get you, despite everyone else breaking them every single day and no one caring.
edit: as for Asia having good street art, Yogyakarta in Indonesia has the best I've seen.