Holy hell. That might be the grossest thing I've ever witnessed.
That's called "efficient recycling". One of the privileges of being at the top of the food chain is being able to push stuff like this to a lower rung. While I certainly wouldn't want to eat anything deep fried in this myself, I'd have no problem feeding it to any of my animals. In fact, I've taken meat that is a little bit "off", fried it up in deep fryer dregs until it was crispy little bits (which keep without refrigeration for a long time) and fed it to the chickens. Good source of protein and essential fatty acids.
As they said, this is more for hole-in-the-wall restaurants and street vendors in China, and I doubt it makes it to big operations packaging for export. I'd be more concerned about melamine in the food. But irregardless, I will be eating neither melamine nor gutter oil, because I won't buy food imported from China. It ain't local.
I have been to China and seen how they treat food. That is not the worst I have seen.
I would rather use my friend's fuel. I have seen the WVO he gets and how he treats it.
"You must be the change you want to see in the world." "First they ignore you, then they laugh at you, then they fight you, then you win." --Mahatma Gandhi
"Preach the Gospel always, and if necessary, use words." --Francis of Assisi.
"Family farms work when the whole family works the farm." -- Adam Klaus