Even if you were to exclude the Chinese player base from the number (including Hong Kong) you would be left with roughly 10% of 2.2 million, which is still a huge number. 220k peak for a new release is not bad at all, so it's not even good cope. For reference, Dragon's Dogma 2 launched with roughly 220k peak concurrent players on steam.
The Chinese player base shouldn't be excluded anyways and it's not a source of shame that Chinese people would gravitate towards something of their own. This is just how things are in all societies: I might be the only person who noticed how the West paid far more attention to its own Paris Olympics than they ever did to the Asian stint of Games in Tokyo or (especially) Beijing. There was far more coverage of the ISRO moon mission and every random SpaceEx launch than there was of (the combined) coverage of the arguably far more impressive Chinese space achievements in recent years on the Moon and in LEO.
In fact, the greatest triumph of the game is precisely that it has been largely through the Chinese gaming demographic that was capable of propelling it into the top charts on Steam, a Western platform through and through. The strength and weight of the Chinese gaming market is now irrefutable for all to see, just as the general Chinese consumer market is in the discourse of wider economics. The positive effects of this highly public financially successful launch on spurring the domestic Chinese gaming industry is obvious, but I want to also talk about the potential effect upon the Western gaming industry.
Look at the Western narrative on the Chinese box office and Hollywood and you'll realize there had been a great deal of teeth gnashing over the years particularly at the fact that Hollywood catered to Chinese audiences by refraining from the chauvinist and racist Yellow Peril slop that used to pollute every Hollywood media in the 20th century about China. They wanted modern films treating China as Hollywood treated the Soviet Union in the first Cold War, but the greed of Hollywood executives in wanting to win a share of the Chinese box office had so far prevented that. It's why, whenever, you see recent news about how "China is falling out of love with Hollywood," there's an unusually approving and even celebratory reception in the normally Sinophobic comment sections because, like a jilted partner, their hopes are that Hollywood will now return to focusing exclusively on catering to what the Western audience wants.
The most important aspect of this game's launch is precisely doing to the international gaming industry what formerly the Chinese box office had done to Hollywood, showing that the contemporary Chinese gamer has become just as lucrative as their Western counterpart. You can sense in the launch coverage's discourse that their greatest anxiety (just like with Hollywood) is that Western gaming development will demote the Western gamer as merely an equal to the Chinese gamer for the industry to cater and pursue.
Games are one of the most effective mediums for propaganda, which is why every Battlefield and Call of Duty game has had "complementary" Pentagon consultant attaches. Particularly, with gaming, you can refashion your own war crimes as that of your designated adversaries for the impressionable youth demographic bloc, not just in the West but the entire planet including the Global South through the dominance of Western gaming. You can literally force the player to go through your agenda-driven narrative by making them shoot Russian or Iranian enemies and this process does a great deal in imprinting your propaganda in, especially, the gaming youth. See how the COD:MW remake depicted the Russians as the perpetrators of a historically infamous American Invasion of Iraq war crime. Even with Sinophobia in discourse everywhere nowadays, however, the only major AAA Sinophobic dabbling game has been largely just Battlefield IV. Even back then, however, EA execs couldn't sleep at night when that game got deservingly shut out of the Chinese market and they hilariously made a pro-Chinese PLA focused DLC to try and win back the (then much smaller) Chinese consumer market .
It's been known for years that the Chinese gaming market is the largest, but it had been dismissed as the domain of mobile games. This was a AAA single player game at by and large retail pricing (the Chinese price according to SteamDB being just a ~37% discount from the US price), precisely the focus of the Western gaming industry. In that industry, the Chinese gamer now has caught everyone's attention in the most flashy way possible. With this, the wool has been pulled from the eyes of Western industry execs and you can see the dollar signs flashing in their envious gaze.