However, some remain conscious as they are hung up by their back legs on hooks and have their throats slit. Their paws are then hacked off and their bodies skinned.
Workers at the Chinese slaughterhouses earn around four pence for each animal they process.
The footage was recorded by Chinese animal rights advocates for The Humane Society who campaign for the protection of animals.
Claire Bass, from the organisation, said: “The facility we found in China is a house of horror for thousands of rabbits.”
She added: “As their fur is being sold to the UK and other countries, it's entirely possible that these terrified rabbits have ended up as fur bobble hats and scarves on sale in UK shops.”
However, there is nothing to suggest that the particular factory they filmed has supplied any of their rabbit fur to a UK retailer.