What did it do ? Like I posted earlier the story has been investigated and found to be a hoax. Most mosques that were demolished were because they had been built illegally, without government permission. Others are apparently still operating.
Reading Zhang Fei's Post 33 - I take this as an 'unofficial shutdown' of mosques.
I.e., no one will admit it - but they are either tearing down mosques under various pretenses, and/or refusing to allow new ones to be built.