Lets attack this question from another angle then.
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.
What's your point? We live in a world where communication obviates the need for everyone to be first hand witnesses. The entire concept of news reporting is predicated on credible third parties.
My point is that majority of western news about China are biased and sensational and taken out of context. You form your opinion based on the source that is already filtered by the journalists.
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 was reading a popular Chinese forum (tianya.cn) thread on contaminated food, and I was surprised at how anti-government the tone was. (think reddit, but more extreme) There were jokes taking direct jabs at the party and state, and I was amazed that they didn't get taken down.
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.