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Why did the Market Supervision Administration issue a business license to the dog meat shop?
According to the relevant provisions.

The Regulations on the Total Prohibition of Eating Wild Animals in Shenzhen and Zhuhai Special Economic Zones have been promulgated one after another, both of which came into effect on May 1 2020. Pets are explicitly fasted, cats and dogs are excluded from the edible list, and it is illegal to sell and eat cats and dogs in Shenzhen and Zhuhai.

In some places, there is no relevant policy, and it is legal to operate locally.