Well first off, I used to post here back in 2001-2003, so if anyone from that era is still around, holler.
Anyway, I was thinking about how Shenmue never mentions communism, but still maintains aspects of history, i.e HK is a British colony at the time, and China, though communism is never explicitly mentioned, is definitely portrayed as cut off from the rest of society. Now obviously the game can't directly reference communism or the cultural revolution, not least because it's being made by Japanese people who are trying to portray China in a positive way, so it seems like the game's approach is to portray China, along with some of the aspects of its society in the 20th century, but not communism specifically.
That said, when I watched a let's play of Shenmue II recently, I realized that Shenhua's house in the flashback has a completely different structure on the same land, as well as an additional garden with a pagoda. The old house had a lot of intricate ornamentation on the outside and looked like a wealthy people's residence, but if not that, it was definitely classical Chinese architecture. The 1987 house is a lot more rudimentary and simple, and instead of the garden and pagoda, there's just a vegetable patch. So that made me realize there's still a nuanced subtle depiction of the struggles China went through, without specifically referencing certain events and political entities. Shenhua mentions the villagers don't have much iron, and iron kind of was scarce in communist China, though less so in 1987, but it's still possible that there'd be less of it in rural areas. Thought I'd share that too.
As for Ren, YS mentioned that not only is he returning, but we'll possibly be playing as him. But what I wanted to mention is that we should have realized it was confirmed from the concept sketches on the Shenmue II GD Roms, since there's a sketch of Ren riding a horse and waving a banner!