An update on this story: the man received 3 years of free childcare. http://www.dailymail.co.uk/news/worldnews/article-1248696/No-chains-Jingdan-Kindergarten-offers-poverty-stricken-Chinese-father-years-free-childcare.html
@cola: In Shanghai, if both parents come from one child families, they can have another baby. I'm not sure for the rest of China. Also, remember than China is vast and laws are difficult to apply. It is not uncommon to see migrant workers i.e. people that come from inner China to the big coastal cities that have 2 toddlers with them.
http://www.dailymail.co.uk/news/worldnews/article-1248696/No-chains-Jingdan-Kindergarten-offers-poverty-stricken-Chinese-father-years-free-childcare.html
@cola: In Shanghai, if both parents come from one child families, they can have another baby. I'm not sure for the rest of China. Also, remember than China is vast and laws are difficult to apply. It is not uncommon to see migrant workers i.e. people that come from inner China to the big coastal cities that have 2 toddlers with them.