Yes some Chinese do eat live animals.
For example one dish that some Chinese people eat alive are live octopus that have been cut into small pieces and served with its arms still squirming.
Basically the arms of the octopus are cut off and they are still squirming so the arms of the octopus are still living and the Chinese eat them while they are moving around.
I was in China around 10 years ago and went to a Chinese Restaurant and I remember a Chinese guy eating some of that live octopus arms.
It was squirming around and he was eating it.
That made me sick and I had to leave.
Some Asians also eat live animals but Chinese do also.
But you don't have to order live animals or live food to eat when at a Chinese restaurant as they have other foods.