A few things to notice about this picture:
(1). This is on a street, not in Tiananmen Square
(2). The vast majority of blurry blotches on the picture are just bicycles
(3). Most of the few people in the picture are clearly alive, since they're propping themselves up on their elbows.
The Chinese line is not that "Nothing happened on June 4th". They call it the June 4th incident, there were a few hundred casualties (half of which were on the government side), and was an conflict between the police and armed radicals, not a massacre of defenseless student protestors. What is depicted in this picture fits completely with the Chinese narrative of events.