There are a number of videos showing live skinning of animals in China.
But I suppose you're referring to this one:
http://www.thepetitionsite.com/1/Stop-The-Live-Skinning-Of-Animals-In-China/
The picture in this petition is the most enduring image for most people.
I can't forget how the animal lifted its head, opened it eyes seeing itself
skinless.
I felt very agitated. I clenched my fists. A very awful
experience. The images of the cruel process keep appearing in my mind for
days.
I forced myself to watch it because this is the reality I must
confront if I want to be in this line to fight against animal cruelty.
The live skinning process was made into DVDs and distributed in many
vegetarian restaurants here in Malaysia.