I've seen and heard of many situations like this before, although usually property damage and not injury. A few years ago an American friend was stationary at a red light and was hit from behind and forced to pay 500RMB, because a crowd turned up and developed an opinion that the foreigner should pay because he is richer (but 0% at fault). In China the compensation rules and culture don't make sense, nor ideas about road rules. Because of this using a motorcycle in a Chinese city is fraught with danger, that if the worst happens you are very likely to be paying money to someone who is at fault. More time riding in a city or town means more risk, and that if you hit any cyclist, ebike or pedestrian it will almost certainly be considered your fault. Don't feel bad about it, the situation can be just as ridiculous between Chinese road users.

My attitude is after 8 years here, I always save the motorcycle for the long rides out of town that help me unwind, especially if I'd be riding a motorcycle less than 4km, bicycles keep you fit. However we all live in different size cities where riding a bicycle can be impractical due to the distances involved.