The CCP is more concerned with expanding their economic progress than nurturing their entertainment industry for soft power.
Western culture – Hollywood
Korean culture – Kpop
Japanese culture – anime
Chinese culture- Wuxia
Ok, so Wuxia isn’t exactly something… that’s widely promoted to foreigners or anything. It also lacks the modern day cultural elements because its tied to Ancient Chinese culture- something that no longer exists. The CCP also makes no effort at all to promote any of its entertainment to Western or other Asian audiences at all – they focus on the large domestic market.
That’s why Chinese culture isn’t as ‘popular’ – the government simply doesn’t see it as a top priority to push its soft power, given its large domestic market.