Poor helpless naive Morrissey fumbling around with words, unable to say what he means and having what he actually said taken as what he meant to say. Something like that? "Subspecies" is the clue here.
And sometimes you want to say that he deliberately made a provocative statement and that otherwise this issue wouldn't be as well known as it is. That seems to be the opposite interpretation.
Because if he had said "the people that do this aren't human" and left out "Chinese" and "subspecies" that might have been more accurate to your interpretation but it wouldn't have gotten the attention it did and we wouldn't still be talking about it.
He also said, "In China, cats and dogs are skinned alive for the fur industry. Come, come, nuclear bomb" (2005)
I wonder if the bomb he had in mind would only annihilate those who were a subspecies while those Chinese who he wasn't thinking of would be spared?