This is all too common. This is the main reason I don’t want to live in Communist China
Part of it is due to the assumption in Chinese courts that the person who helps is responsible for the accident.
Another reason is Chinese sort the world into two sharply dimarcated categories. 自己人(Our people, ie. family and close friends) and 外人 (outsiders, ala everyone else.) Chinese care more about the people close to them, thus they have less energy for outsiders.