Found this, which makes it more complex.
China's one child policy is a government-dictated limitation on the number of children certain groups of people in China can have without paying a fine. More correctly termed the "family planning policy," it is often misunderstood as forcing all families to only have one child or face serious consequences. In reality, it has many exceptions, and enforcement is lax in some areas. Regardless, it remains controversial, as it is seen as a restriction of reproductive rights, and does sometimes lead to abuses of illegally-born children.
Exceptions and Loopholes
Though many outside of China are under the impression that the one child policy applies to all Chinese citizens, this is not true. In fact, there are a number of exceptions, and the legislation applies to only about 35 percent of citizens, as it only applies to married, urban, ethnically Han couples. Ethnic minorities, those in rural areas, and parents without siblings themselves can all have more than one child without paying a fine, as can those who have a severely disabled child or one that dies. In some circumstances, exceptions are also made for those who lose their children to natural disasters.