The problem with current model of censorship is not censorship itself. It is nobody, and I mean nobody, knows what are the red lines. To top that, you need to produce the whole movie/drama (not sure about games) before getting the green light.
This makes people extremely risk averse. Like who would want to put 100 million dollars in a drama only for it to fail censorship? Not only that censors also then ask a lot of changes in the script after production which might break the natural flow of the story.
This is also the reason why government productions do better, because they have more leeway in censorship and are not constantly second guessing what would or wouldn't be acceptable.
This has to be treated as a nationally strategic industry.
Which means, that regulations have to be altered if the industry is not doing well, and the only benchmark is the leadership/fraction of sales in the global market.
I want China to nurture a global entertainment industry (movies, dramas, games, fashion etc.) that is competitive with Korea + Japan + US combined at the very least.
This means China needs its own Harry Potter, Star Wars, MCU, Lord of the Rings, Game of Thrones etc. etc.
Ancestors have already given us a leg up by leaving us with the best literary tradition in all of the world.
What I want to see next is very high production, faithful to the story (including gore and violence), take of the Three Kingdoms.
PS- Don't even get me started on stupid and old taboos against ghosts and all. Like yes, there was a time when people were too superstitious, but now it's just a widely used tool in all kinds of entertainment.