They really shouldn't, in fact that's the major reason why their stuff sucks so much...
What the TV/film regulators are doing now is being directly involved in the media projects themselves by approving the script and censoring what they don't like. That's the wrong strategy.
What they should be doing is this:
Make investments in the projects but do NOT get involved directly. Let the creators and writers work.
Also, have CCTV and CGTN promote quality cultural products like Genshin Impact, etc..
The best way to develop the entertainment industry is via a bottom up approach. People working in the industry know what viewers and consumers want to watch. A govt led top-down approach is unlikely to succeed..
The CPC has done a superb job with economic development but their media regulatory department has been a complete disaster.