There will be no embarrassment
The chinese government will deny any involvement and continue regardless.
There was an excellent "60 minutes" a few years back which was looking at how they do it. Where US, USSR, etc worked with quality (having a few spies where they thought it mattered) the Chinese work with quantity. They twist the arms of people who try to visit relatives, do business or do "business" (like in this case) in great numbers. All of these are disposable, they can pretend they have nothing to do with them and the sheer numbers swamp the ability of FBI, MI5, etc to process the information.
As a result for every muppet that fails (like these) a muppet gets through while the PLA can deny the relationship with impunity.