(Ignore the angry face, that was meant for the last sentence)
Shang does NOT lose to Ermac. Everything about his zoning capabilities is inferior, not to mention his nonexistent close game. Shang at least has frame traps. I wouldn't say he loses to cyrax either. His teleport can be tracked by the up skull and the trades can work in Shang's favor. As I said, Reptile cannot outzone Shang. That matchup is reliant on the elbow dash and Reptile pressure. Even if he lands the random forceball, the trade will ensure that he cannot get up quick enough to combo. Like the rest of the cast, Shang is 5-5 against Scorpion: if he guesses wrong, he loses. the Noob matchup is definitely annoying, but Shang's unbreakable combos help him big time. Kano also does not win now that the upball is punishable. His knives can make it difficult, but the Kano balls get him killed. At range, Shang has the advantage. Kitana is also annoying, but nobody can be perfect with the IAF's, which means she will be hit by a groundskull. The wave dash can also be dealt with by upskulls, which will knock her out of the air. The only matchups that I would say are stacked in the opponents favor are Kung Lao, Raiden, Mileena (although REO doubts this) and possibly Sektor. Btw, I took S-tier to mean top tier, not necessarily godlike or broken. Shang does have to work hard, but the payoff is usually big. Now if NRS had just let him keep the groundskull tracking.