Yes yes I checked with my colleagues in China. They say is standard practice. If u want the 2nd child, all u need to do is pay the penalty to those 計生畜牲. Amount of the penalty also depends on them. And I think (guess only) they just keep this "penalty" for themselves, to come to HK go shopping at H and C, buy our apartments, have babies at our hospitals etc etc.
I guess this is the "strong country" message: if u r poor, u might as well be dead. like that poor baby.