You will have much better view of the whole story if you can read Chinese media, just for the full story. You might refuse to do so because they are controlled by the government. I ask you to talk to Chinese, you refuse as well because you think there is no need. How "sound" do you think your opinion will be?
I think Chinese tend to avoid talking shit about their country in front of foreigners to "save face". It seems to be part of the culture.
Why do you think that China would never do anything to a Google employee if Google the company did something that China didn't like.
It has already happened in countries that are supposedly less strict than China, See the case of Italy issuing an arrest warrant for Google employee's due to a youtube video.
Yes, I can believe something like that could happen.
It could be a way to get back at google for defying them, for example.