I think one of China's worst enemy in its creative space is its own censorship/propaganda committee. Like for example, they can't make a "silent sea show" because some ancient cadre would say "we can't show a flaw in our space program." They can't make "hellbound" because of monster/ghost censor ship. They can't make Squid Game because of social commentary and crazy level of violence. The only censorship i agree on is squid game's violence (retarded level of violence definitely causes mental health issues, hence americans shrug at 3k+ covid deaths in 1 day), but some story showing the struggle of poor should be able to pass thru occasionally. It's one thing to dwell on social commentary to cause an unrest, its another thing to just tell a story.
Another huge problem is idol worshipping that ends up producing alot of quick money idol garbarge. However, there some gems that make it thru each year and I think they can surpass all of the other countries on their own if they really try...