I think when you say bad for the sport what you really mean is bad for the business model of European clubs. They have to adapt to change and it's easier to adapt when you're already at the top.
I personally think it's great for the sport. It would be awesome if the "top 5 leagues" were England, Spain, Germany, USA, China rather than 5 Europeans.
For supposedly the biggest sport in the world the level of the professional game outside Europe is pretty terrible. If football is big in Asia then Asian kids will take it more seriously and who knows, in 30 years we might have a world cup final between Spain and China. The USA did the same thing except on a smaller scale and that's turning into a half decent league, so I can't see any problem with China doing it but a bit faster.
And foreign investors have come into European clubs and done the exact same thing anyway so I can't see much difference between Shanghai and Man City doing it. It's also a bit of double standards for brands like the Premier League to get rich expanding into Asia by charging them millions to see English football and then getting upset that when you spread top level football to these places that they might want to give it a go themselves.
Culturally football is only a big thing in Europe and South America which is why the best players come from Europe and South America. In England many childhood heros are football players of the time. I doubt Chinese kids are dreaming of becoming a Chinese player. If the sport as a whole could tap into countries like China and Japan and get them producing talent at the same kind of rate Europeans do then that'll be great for the sport. Between India and China that's something like 35% of the world's population and between them they can't even get a team ranked in the top 50 by FIFA.