I would be fairly amazed and disgusted to see this happening in my streets.
I've also had similar experiences when I visited Suzhou, it was far worse though, FAR worse.
There was this middle-aged lady who let the child (a girl) she's taking care of (maybe that was her grandma?) pee on the floors of a McDonald's!!! My mum and I were sitting nearby, and we saw the horror unfold in front of our eyes.
The couple didn't even order anything, their tables were empty. She pulled the child up, took her pants off, and let her pee on the floors of the restaurant. I really wish I was making this up. It was just utterly grossed, everyone else was also grossed out and stunned, giving the couple rude stares. Just... the effing toilets are less than 20 metres away!!!!!
In cities such as Suzhou and Shanghai it's acceptable for kids to do it on the spot, provided that their parents clean up the mess.