What happens to a child if he is born to a family that already has a child?
A) It really depends. The rule mostly applies to the urban folk. Rural people are allowed to have a second child, if the first is a girl or suffers disabilities, though birth spacing of 3 to 4 years is encouraged.
B) Wealthier families can pay the government to let them have a second child.
C)Children born in overseas countries are not counted under the policy if they do not obtain Chinese citizenship. Chinese citizens returning from abroad can have a second child.
D) Certain provinces have relaxed the rule and allow parents who are single children to have two children, for example Beijing and Henan.
E)A fine is levied upon people who have more than one kid, though the elites tend to get away. The fine is based on a rather complex calculation. Generally the fine for a child born above the birth quota that year is thus a multiple of, depending upon the locality, either urban resident disposable income or peasant cash income estimated that year by the local statistics.
Sources: Daily Interactions with Chinese scholars, Wikipedia, and of course personal experiences living in China for a month or so.
First of all, are you living in China? If so, than I have a whole load of other questions for you.
Judging from his username Zaky, yes he is from China. Either that or he is part of the Chinese diaspora like moi. I can supplement his answers if he can't translate them to English properly.