No, it won't. China may have perfected it's replication of Japanese animation but it's still severely lacking in storytelling. Their stories are heavy-handed with dramatics, forcing emotional storylines and just being wholly unorginal. Take "Link Click", great animation, interesting story but season 2 tried too hard by adding elements of mystery and unnecessary characters when the original plot was fine. Then there's "The Daily Life of the Immortal King", it started out strong, funny and interesting but it lost the plot within five episodes. It went from action-comedy to romance in such a jarring way and that's the problem. Chinese animators don't know how to tell a story in a structured sequential way without relying on sentimental value to aid it along. They don't stick within a genre and are all over the place. Japan and South Korea are easier to digest for an outside audience, because they're rules for storytelling align with those of most of the world. China is an outlier and this is why they don't have soft-power. Their way of storytelling isn't digestible to people who aren't familiar with it. So no, China in my opinion isn't a threat to Japanese animation. South Korea is.