According to my freelance artist friend who does hentai as commission, he did told me a lot of second strange animation was done in Malaysia, no doubt China has a lot.

Thing is the Japanese animators won’t let a China company have good animation if they did it. Cuz they want Japanese anime to remain on top.

Yeah this friend of mine involved in some Japanese animation company in the past. Graduated from American art school, quite talented (his hentai too, u might have seen it in pixiv or somewhere hehe)