To quote a Chinese friend when talking about eating dogs: "Don't worry it's a different dog."

So basically they see two different animals.

There is this generic brown mutt that can be seen piled high in cage on the back of a truck, going to the meat market.

Then there is the white (normal because of chemicals) dogs that are nothing but status symbols to show that the owner has money.

Of course you could say there is a third farm type of dog, but most Chinese will only think of the first two when I ask about it.

They love to eat them and love to have them as pets. It's a love-love relationship

As the pet dog thing catches on I am concerned the cities will be over run with dog shit. I have no problem with pet dogs, but if they are status symbols only, not looked after and in a country with severe overpopulation and environmental issues,it may have been better for all if they remained a food item only. Any country that has a large number of wealthy people with that much extra disposable income that can afford expensive dogs and especially pony up with huge sums to have their dogs treated by vets or grooming salons but does not have free basic health for EVERY citizen has got there system out of whack. Just look to the USA as an example and China is quickly going down that path.

even though they keep it as a pet it is still considered an animal not a member of the family

I don't think the Chinese love to eat dog. They have traditions that do and I never saw any meat producing farms like at home.So they eat what is available.
With a dog that freely breeds like a street dog, the offspring will revert back to a small-medium sized basic dog, which has short fur and a curled tail . I saw the meat dogs, they are dogs,not something else.
I saw many small dogs running around the Zhengyang St area, mostly belonging to store owners. No one seemed to mind these dogs. I saw bigger dogs, mostly part Collie every where I travelled. No one knew Lassie or Collie. I noticed if the Collie was being walked on a street, most people were really afraid of this dog. They would stop and back away from the dog.
Pedigreed animals are selling for big money due to short supply. Now is the time to be a breeder.
As for dog crap on the side walks , China has street sweepers At home when I did the bank deposits for work, i had to walk downtown. The sidewalks always had dog crap on them, because of everyone walking their dogs in the evenings. We have laws that say you must pick up after your dog and some don't, but we don't have street steepers, so the dog crap stays.

Well they 'love' their dog but would eat the neighbors dog!