Why are hack 'n slash/spectacle fighters so popular among Chinese developers to the point where a plurality of Chinese games (HI3, Black Myth Wukong, Phantom Blade Zero, Lost Soul Aside, Tides of Annihilation) are in the genre, given that most of those games were until recently console exclusive?
I don't know! As a character action / spectacle fighter / hack and slash / whatever fan it's something I would love to know for myself, because if you're like me and lamenting how Soulslikes have almost completely wiped out pure action from the face of the Earth, indies and Chinese games are basically our last surviving bastion.
(I mean, look at Punishing Gray Raven being a better DMC style mobile action game than Devil May Cry's own mobile game.)
If I had to guess, it's because Chinese gamers have a long and storied love affair with all kinds of action games from Monster Hunter to DMC (take a shot every time a gacha character takes something from Vergil's DMC3 moveset, or don't because you'll die) and in this current climate where Western AAA keeps actively killing its own devs even when they succeed (such as with Hi-Fi Rush) and Japanese AAA is infamously restrictive, Chinese developers are the only ones willing to risk it right now.
Now that I mention it, I remember I linked an article here a while back about how Japanese developers say Chinese game development is a whole different beast, willing to spend money on risky ventures and that they're unafraid to just implement a crazy idea that someone in the team suggests.
That bit is important, because going for pure action compared to Action RPGs and to Soulslikes is NOT playing it safe, from both a commercial and design standpoint.
There was a very, very big essay here that I just deleted because I counted 9 paragraphs and it still wasn't done and it's not like I was saying anything any Bayonetta/Ninja Gaiden / DMC / classic God of War etc fan hasn't already said. To cut straight to the point: pure action is harder to develop, harder to get right, sells less, and turns off a vast majority of gamers because without the builds and stats of an Action RPG, their only metric of progression is the vague sense that they're getting better at combat.
If you're doing pure hack and slash action nowadays, you're doing it for pure love of the game, and it seems only Chinese devs have the funding to go beyond indie (even then, Black Myth Wukong and Phantom Blade Zero clearly have Souls elements baked into them, they're just faster and flashier).
ALL THAT BEING SAID we're getting a new Ninja Gaiden and a new Onimusha from Koei Tecmo and Capcom, while Action RPG titles like FF7 Rebirth have found great success implementing more features from classic hack and slash such as air combos and juggling. Maybe a combined effort from the old guard with the new blood Chinese devs making titles like Tides of Annihilation (or that one solo beast of a developer making Lost Soul Aside, ive been following that project forever) will be enough to revive the genre. I sure hope so, because Dante sure as hell isn't coming out of retirement to save us anymore!