Err.... The article in Xinhua news, I mean... Not the city...
Here it is (Google translations is your friend):
Not only it is still on the site, it can still be found using the search tool from the main site. This is from the site of the Jiangxi branch, Jiangxi being the local equivalent of Arkansas.
The Chinese Wikipedia does have a page on the city, but it is denying its existence:
But who are you going to believe, the glorious communist media, or a western fake encyclopedia?
By the way, a Google search for 沙科保 (the name of the city in Chinese) returns 61'000 sites, quite a few being news site. This is not a recent story.