Poor management of a situation that could be easily remedied by requiring rabies vaccinations, leash laws, or even simply more reasonable use of pet licensing. Euthanizing man's best friend is NOT the appropriate or reasonable answer. It's a sad day for animal rights in China.
http://www.npr.org/blogs/thetwo-way/2011/08/03/138957434/chinese-city-bans-dogs-telling-owners-to-turn-them-in?sc=fb&cc=fp UPDATE:
They have lifted the ban!
http://www.npr.org/blogs/thetwo-way/2011/08/04/139005391/pet-owners-win-chinese-city-relents-on-dog-ban?sc=fb&cc=fp