I think it’s important to separate the beliefs and behaviors of the Chinese Communist Party from that of the overall culture of the Chinese people. Confucianism stresses honor and personal ethics and that has long been foundational to the culture. The CCP however has shown they will do anything to maintain their power. I would not visit China right now and if I had a family member participating in the Olympics I would advise them to keep their mouth shut.
I agree with everything you've said here, especially the part about separating the members of the Chinese Communist Party (CCP) from the "regular" Chinese people.
However, I will also add that Confucianism (honor; personal ethics; the old/traditional ways of doing things) was essentially destroyed during the Cultural Revolution, when you had students beating up/killing teachers and sons/daughters turning in their parents to the Red Guard.
Thus, much of the honor and personal ethics of Chinese people has been greatly reduced, especially in the context of business and interacting with non-family members (e.g., strangers).
My wife is Chinese, so . . . over the years, I've interacted with many Chinese people and gotten earfuls of details/opinions regarding Chinese issues/subjects. My thoughts/statements are based upon that.