It basically asks "Why can't China make a movie like this?" Kung Fu Panda was a love letter to Chinese culture, and it connected with people worldwide.
I think it comes down to government censorship. Art is expression and unapproved expression is seen as a threat to a dictatorship.
It makes me sad to think of all the Chinese art we have missed out on because of the insecurity of a government.
Most of the art, music, literature before the twentieth century were created under censorships of authoritarian regimes, and they don't lack vitality. Creativity often thrives under constraints.
The main difference is the classics were often created by a single person, while modern entertainment are created by large groups through industrial processes. The latter are capital-intensive, and investors are risk-averse. The bigger the market, the bigger the investments, the bigger the risks, and censorship is not insignificant a risk.
I think as the cost of production shrinks with technology, there will be an explosion of "high-production-value" works created by smaller groups or individuals, many from the "soft-authoritarian" countries. Traditional entertainment industries may gradually fade away, or pivot to some new medium.
> To protect the South Korean culture industry, the South Korean Ministry of Culture received a substantial budget increase, allowing for the creation of hundreds of culture industry departments in universities nationwide.[21] It has justified its financial support for Hallyu, estimated to be worth US$83.2 billion in 2012, by linking it to South Korea's export-driven economy.[22]
The CCP has tried to get their culture out there, it just has not been successful at the visually obvious scale of Japan or Korea. But their culture is definitely getting out there, and I think we often don't spot the Chinese influence on something unless some journalist finds out and writes an article about it.
Some of their influence is leveraged in business deals, with several movies being altered by the demand of the CCP, and these changes persisting in worldwide releases, not just the Chinese-released version of the movies.
Some of their influence is leveraged in video games- Genshin Impact is a famously successful Chinese game. There are some competitive Chinese teams in various pockets of e-sports too. Tencent also owns several video game developers, and occasionally uses their influence to change parts of a game to please the CCP.
There is a Chinese animation industry (print and video), and occasionally they get a worldwide success. I remember being surprised when I found out that "The Daily Life of the Immortal King" was Chinese- you can tell it isn't Japanese but lots of people guess that it is Korean.