China is China. There is a lot of history behind the attitude towards this type of thing and hopefully this helps you understand why it's a practice there.
Unfortunately there is no regard or value for life because of the way China is run by the government. Not even human life:
http://www.youtube.com/watch?v=ECeC4R-Gjtc
If you help a dying child in the street, you are responsible for their healthcare costs for LIFE. It is the law not to care. Caring means you are punished financially for life.
It is not the Chinese race that is the problem...many people who watch that kind of video have racist opinions about it...it is the government that's the problem. I think the youth of China is really on the right track with things and I truly hope the culture changes back to the glory and magnificence that it was before the Cultural Revolution.
The people who would buy these turtles and newts as keychains are no different than the Paris Hilton-types that bought chihuahuas to put in their purses, and then 2 years later all the dog rescues are overrun with chihuahuas.
Also their traditional medicine has only the regard for human health, not the health of the ecosystem the materials are harvested from. Examples are sharks with their fins cut off, and the rest of the animal is left to suffer and die because only the fin is useful in medicine. Also, progress is paramount. An example is the pink river dolphins that have gone extinct because they were in the way of cargo ships.
A lot of things have to change in the world.