Hi there Mosquitobay,
we were in the "antique" market at Chengdu today - so I kept an eye open for that bone type you suspected could be human. There is a lot of it (or at least stuff that's almost identical) - and its animal - and new - and its sold with all the other Nepalese stuff.
One of our friends apparently has human beads - a Tibetan they call "the fatman" (sounds like a spy novel - ehhh). But the fatman wasn't at home (hope he aint off in a search for more human bead sources!!!!)
That other pic is a place - beleive it or not - which is Chengdu's fake antique wholesale market!!!! It lies about 500M from the "real" antique market - but at least 90% of the antiques claimed to be real, dug up from tombs, found on the silk road etc etc - come from the fakey market!!!! There was even a piece on the local TV about it and how people are conned into thinking fakes are real.
But luckily the govermnent have acted - they have forced the fake market to move - but only about 2KM away - maybe to stop so many tourists stumbling onto this place and suddenly finding 5000 more examples of their rare ming dynasty beads being sold for a fraction of the price they paid!!!

China is a real scream sometimes :)