That you find this scenario so fantastical is naive...and yes, the Chinese government openly threatening its own citizens abroad is documented. What do you think of the following article, is it cause for concern for you, or do you believe it's just our media misrepresenting China?
Blackmailing any random employee (with their family safely in the US or another western country) is absolutely not the same as blackmailing an employee with the family still living in China or Russia.
If you have family in China and you have access to government information or IP they want it is not at all far fetched they will do this.
https://www.theguardian.com/world/2019/oct/17/think-of-your-...
They also have no problem black-bagging non-compliant citizens, no matter how high-profile they seem to be:
https://www.bbc.co.uk/news/world-asia-china-45806904
Blackmailing any random employee (with their family safely in the US or another western country) is absolutely not the same as blackmailing an employee with the family still living in China or Russia.
If you have family in China and you have access to government information or IP they want it is not at all far fetched they will do this.