yes - they take it out on family even if family had nothing to do with anything. I was listening to an interview with a Chinese immigrant (news writer) that had been vocally critical of the government. She had been communicating with family back in China on line and via phone being very careful to keep anything political or negative out of their conversations. All of a sudden she could no longer make contact with her family - all phone numbers and e mail addresses - gone/ changed. It took her months to get info through "the grape vine". the government had put considerable pressure on the family - some of them were even forced to move and all had to immediately stop any contact.
when investing or doing anything with China, you always have to be very careful and have one eye looking over your shoulder.