OK, thanks for the update in the article on the home page.

So the article is saying that the hospital has been blockaded and damaged to the extent that they have stopped taking patients? For nearly a week?

Google Videos seems to be blocked recently too. Some of Google News also seems to be intermittent lately.

Here is a link to a blog concerning some of these issues:
www.shanghaiexpat.com/MDForum-viewtopic-t-50190.phtml
In that discussion, they state that within the first month to obtain from the foreign parent's consulate a 'Report of Birth Abroad', and then use this to apply for the foreign passport.
However, that may be before the rule changes that you mentioned, but perhaps something in the discussion will provide you with useful information.
Wish you all the best in sorting it out!

My wife worked with 3 girls in an office who were named, respectively, "Ice", "Lemon" and "Tea". They were unaware that any connection could be made between their names.