It's changing though. Wu Kong Black myth and even the top grossing film of last year was chinese animation. See the comments under the trailer: https://www.youtube.com/watch?v=gsiAYjyiIBM. The film was apparently incredible.
The core culture of China is actually foundational to much of Asia. The stuff you see coming out of Japan and Korea is surface level aesthetics built on top of this foundation. You're probably thinking Nintendo, KPop and anime.
Once China makes the aesthetics just as good as other parts of Asia I can see China becoming a cultural power house. Even the mythology surrounding China historically in terms of say one thing like Wuxia is better than anything out of Korea, Japan or the west in my opinion.
Really in the end people are more attracted to the aesthetic presentation of everything. Japan does this really well while China has always been unskilled, crude and rough on the edges. But this is changing at a nearly breakneck pace.