Zhoushan, Zhejiang province, is leading the country in loosening the one-child policy, launching its own policy last week in an effort to solve its longtime population problem.
Under the decision made by the Third Plenary Session of the 18th Communist Party of China Central Committee this month, couples are allowed to have a second baby if either parent is an only child.
A document published on the Zhoushan government's official website says, "Eligible couples with both spouses or one spouse an only child, and who already have one child in the family, can apply for giving birth to another one."
But the document adds that at least one of the two people must be a registered permanent resident of the city.
Local officials believe the new policy will rectify the 11-year growth decline in the city's population.
Xia Qianfeng, vice director of Zhoushan's health and family planning bureau, told Modern Gold Express that the low birthrate has led to a crucial structural problem.
Zhoushan, a coastal island city known for its marine industry, had registered 970,000 people by the end of 2012. But the city's population had begun to shrink with the new millennium, and now it is the only city with long-term negative population growth in the province.
The local government said it is facing a serious aging problem. In 2012, 20.32 per cent of the population was age 60 or older, compared with the provincial average of 17.87 per cent. The proportion in Zhoushan is expected to reach 40 per cent by 2030, about 8 per cent higher than the province as a whole, and 16 per cent higher than the national level.