If an asteroid was going to hit Earth, would governments tell us the truth about that? No, because they would not want to "incite panic" and lose control over their power.
So in a low-trust world, can you really trust anything a government tells you at all? No. Clearly not. That doesn't mean "panic" it just means, they don't have your interests at heart at all.
Also, with China, they would just as soon throw the dead in mass graves and shut up about it as doing anything else.