which one ? Gran Turismo?
You mentioned that Sony will let China expand the market. Chinese devs have massive pockets, they're already buying a lot of Japanese devs, not the other way around.
PlayStation also has Team Asobi under their belt.
Ironically, despite Sony shutting down Japan Studios, they salvaged the most promising part. With how they pushed the VR medium, and put on a showcase with the Dualsense, they could very well replace the quirkiness and creativity that Japan Studios brought to the table, but at even higher level of quality, critical success, and commercial appeal.
You do realize Sony could also purchase a few Chinese developers down the line? I'm not sure how that will deter Sony from expanding the market in China, when that is already happening with the PS5.