It's an urban legend. Don't worry, the Chinese are not cannibals. However, there is some speculation that they may derive some usage of fetus remains (but perhaps this is afterbirth or the umbilical cord, as some suggest) for some particular potions in some of the more rural areas of China or in Tibet. The Tibetians are known for not wasting anything. You do know the ritual of the dead in Tibet, don't you?

If you don't like the idea of ingesting products from human blood, just remember it wouldn't really be that different from eating a very rare steak, now would it? I guess it depends on culture. None of it appeals to me, and I do find the whole idea disgusting.

www.snopes.com/horrors/ca.../fetus.htm

urbanlegends.about.com/li...80601a.htm