The new policy took effect yesterday, and a decrease in dog registration fees will also take place. This action is meant to encourage people to properly register their pets. Indoor pets like cats and birds are not required to be registered.
Though people with more than one dog may be understandably anxious about this new policy, one-dog families seem largely unconcerned with the changes. (Take a look at this Wall Street Journal for more information about how people are dealing with the announcement.)
We often move pets to Shanghai (we actually just posted a pic on the PetRelocation.com Facebook page of a pug named J.J. who recently made the move -- See J.J. with his owners below), so this is an issue we'll remain aware of. Feel free to share any experiences with or advice about living with dogs in China.