This. I assume they either left shanxi totally uninhabited as a monument, or far more likely turned into such an ludicrously armed fortress that Cadians would be envious of how well defended it is.
Somewhere in between.
By the early 2170s - the timeframe all the existing segments are set in - Shanxi is a major naval base amounting to a fortified strong point on the frontier of human space, and the site of the General Graham D Williams Memorial Station orbital shipyard complex - one of the Systems Alliance's seven facilities suitable for the erection of capital-class warships. These yards run full tilt, night and day - a completed battleship is signed over to the navy every ten days, with smaller vehicles leaving on the hour, every hour, and usually as many as six to eight thousand vehicles under refit at any given time. During times of war, it would be the front-line repair yards for any thrust into Turian space.
The planet itself has been recolonised. The site of the old colony's capital city is now considered an Alliance war grave - there are roughly one point two million unaccounted-for human bodies somewhere in the rubble - and as such is patrolled night and day by dress-uniformed Systems Alliance soldiers in a manner directly and deliberately analogous to the Tomb of the Unknown Soldier. It does, however, retain seventeen living residents: the adult survivors of the war all flat-out refused to leave, and all remain resident in the city, along with the families three of them have began since the war - one as a couple who met via surviving the war together, the other a woman who married a Systems Alliance Marine who then joined her as a resident in the place now known as the City of the Dead.
The new colony is on the same continent, but a couple of hundred miles to the north, directly next to where the Turians first set foot on the planet and grown up out of the camp that was set up for the temporary population of construction workers in the aftermath of the war; the location of the Turian basecamp is now a sewage works, and an open-air settlement pond stands where the Turian headquarters was once set up, very deliberately of course. The new colony was, while still a transient camp, named Douala by the leader of the team that broke ground in the building of it, after his hometown in Cameroon on Earth. He is now a resident, and has been joined by numerous fellow Cameroonians - the planet now hosts the largest concentration of persons born in Cameroon off of Earth.
As of the 2172 census Shanxi has a civilian population of a touch over twenty-six million, with a very high percentage of them naval shipwrights and support staff. The colony is quite ethnically diverse; that said there are over three and a half million ethnic Bantu and nearly three million each of ethnic Cambodians and ethnic Scandanavians on the planet, which has began to establish an interesting hybrid culture of its own.
There is a small but famed non-human minority on Shanxi; this group is made up of ex-slaves freed by personnel from the fleet elements who call the planet their home port. Nearly half a million non-humans now call Shanxi home, some ninety-five percent of them slave-caste Batarians, and the first Batarian officer was recruited into the Shanxi Colonial Police Department in April of 2170. Incidentally, this makes Shanxi the planet with the largest non-human population in Systems Alliance space. None of them are Turian, nor have any of the twenty-six Turians to legally enter Systems Alliance space since the war ever been granted permission to set foot upon Shanxi, and Turian civilian vessels are advised not to approach within several AU of Shanxi as they are liable to be shot down without warning - this has happened on four occasions.
The planet has a comprehensive gun culture; this can be considered typical for all modern human colonies post the invasion of Shanxi. Nearly ninety percent of adults on Shanxi own at least one firearm, local gun laws are extremely permissive with many military-grade weapons considered civvy-legal, 'invasion preppers' are very common, and over a third of the planet's adult population are members of the Shanxi Territorial Army Division. Violent crime is very low, however those crimes that do occur (some ninety percent of which can be classed as crimes of passion) inevitably result in gunshot injuries - as a result the murder rate is downright painful. The local police are easily as heavily armed and armoured as the Systems Alliance Marine Corps; they need to be.
In addition to the Territorials a division-scale professional military ground forces presence is maintained onworld at all times, stationed at Camp Graham roughly halfway between the old and new cities - at any given time two companies, one armour and the other motor infantry, will be stationed guarding the City of the Dead. Soldiers are never required to spend more than six weeks stationed at the City of the Dead as it's renowned for seriously impacting morale in units kept there much longer than that - there aren't many soldiers come back from duty there without believing in ghosts. During times of war, this presence would most likely be swelled to four to six full-scale army groups.
In space, representing the lion's share of the system's military presence, Shanxi Station is typically guarded by the First Attican Sector Fleet, Systems Alliance Navy, formed from six full-strength squadrons any one of which would be a match for the combined navies of the entirety of Mass Effect canon. At any given time two of these squadrons will be in orbit of the planet with the remaining four on patrol in the surrounding systems, chasing Batarian 'pirates', or rattling sabres at the Turians across the border. In addition the system is full of thousands upon thousands of manned defence platforms, each able to provide firepower equivalent to a cruiser - all in, out of the dozen most fortified systems in Human space, Shanxi is at place number seven.
It would be a tough nut to crack.
Edit: At the suggestion of Slayer Anderson, have threadmarked this post.