This is actually not true. The use of AI media in the Chinese entertainment industry is just as pervasive and probably more so than the US, and Chinese universities and private firms are developing their own AI image/video generators at an equivalent pace to the Western firms. For example you have Chinese-developed SOTA DiT txt2img models like Pixart, Hunyuan and Lumina, and even SOTA video models like Kling. Tencent, Alibaba and Bytedance are putting out various models, optimizations and distillations in this space as well. Even back in April of last year, there were articles indicating a 70% decline in illustration jobs in sectors like video game development.