It's not any different to me then bettas in a plastic cups we look at in everystore in Canada, or puppies in a glass boxes in petland.
And yes China has a bigger problem them a goldfish in a key chain, just search Chinese live animals market or dogs for meat/fur trade.
How about a bonsai kitty? Fully operated business in New York City with website and phone#.And apparently there is a thing like appropriate Bonsai Kitticulture permits from the U.S. government from reading there website.
http://www.ding.net/bonsaikitten/bkmethod.html