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Under Chinese law, sperm from one donor can be provided to a maximum of five married women (singles are not eligible) and should not be distributed again after a recipient is confirmed pregnant.
The restriction is to prevent the risk of marriages between men and women born of the same anonymous donor.
However, Lu Guangxiu, director of Hunan province's sperm bank in Changsha, the first in China and now the largest in Asia, said she feels the limit is a waste of resources.
"It's been scientifically proven that in a country with a population of 3 million, the chance of intermarriage between the offspring of one sperm donor is extremely slim when sperm is provided to five women," she said. "For a country of 1.3 billion people, one man's sperm could safely be provided to at least 10 women."
Despite the collection and usage of sperm samples in China being far more strictly regulated than in the United States and other Western countries, Lu warned that there are still loopholes.
As an example, she cited the fact none of the sperm banks' donors database are linked, which could theoretically allow one person to donate several times, collecting the compensation from different provinces.
"The money on offer is unlikely to many tempt people to try it - it is only viable if someone relocates - but China's sperm banks should have a system with which they can share information and keep track of donors nationwide," said Lu.
In the meantime, banks are attempting to attract more people by setting up blogs on popular Chinese websites. Potential donors can ask questions about services and get other health advice.
"I don't think Chinese people are open enough to accept advertising for sperm banks in magazines or on television because it is still a very sensitive topic," said Lu in Changsha. "To respect donors, we'd like to keep everything private, including our advertising.
"Word of mouth is still the best and most effective way of attracting donors," she added.