Everyday spoken language will have a lower rate of loanwords, but writing about any complex subject will have a higher level.
Once you get into philosophy, politics, literature, etc., you're dealing with a high level of borrowing, both in the case of English and of Japanese.
But regardless of whether the true rate of loanwords from Chinese is 20% or 50%, this is a massive level of linguistic influence. And again, this is just one aspect of China's cultural influence on Japan. I mentioned the Kanji writing system earlier, which is very important in Japanese culture, but I could also point out many other areas where there's significant Chinese influence, such as literature, philosophy or religion, or even more banal things like the game of Go, which is one of the most popular games in China, Korea and Japan.
I'll give just one obvious example: Kanji. Kanji is obviously a major part of Japanese culture. It literally means "Chinese characters," because that's what it was adapted from.[0]
Or to give you just one more example, because it's incredibly striking: Japan's own name for itself, Nihon/Nippon, is borrowed from Chinese. The same is actually true of "Vietnam," which is also a loanword from Chinese.
0. https://en.wikipedia.org/wiki/Kanji