The same is true of all large markets. US movies generally don't put India/EU/Japan in a bad light because the goal is to maximize profits.

Consider the last Pearl Harbor (2001) at the time it was the sixth-best debut of all time in Japan. That was very much intentional and had a big impact on the film.

It's different, because an organization or individual making a negative movie about China might get all their future movies blacklisted from the country.

Hollywood did once put Japanese into a bad light in 80s~90s.

At least in RoboCop 3, the antagonists was Japanese.

https://en.wikipedia.org/wiki/RoboCop_3

Poor Russia

So we're stuck with Russians, Nazis, and fictional -Stan countries. We've already reached that point in the video game industry.