it still is a much better starting point than coming up with your own bespoke ISA, building a toolchain around it and convincing potential customers that your proprietary architecture is worth the effort to deal
There are lots of somewhat successful yet little-known Chinese companies with their own proprietary architectures and the toolchains to match, so I don't think it's that clear-cut. (That said, most if not all of them are somewhat MIPS/RISC-V-ish anyway...)
I do think 8051 is better when you don't need 32 or even 16 bits. Even 4-bit MCUs are still around in ultra-low-cost ultra-high-volume products, which is to say RISC-V is, as you said, just a different flavour of MIPS with very similar tradeoffs.
China is different - the state probably has impact on cpu/mcu vendor selection.
Google search turns up LoongArch (RISC), Shenwei (CUDA-like, HPC), UniCore (RISC). ESP32 is using Tensilica LX6/LX7 RISC base (RISC designed for custom hardware extensions).
C-Sky and Andes NDS32 were popular enough to be supported by both GCC and the Linux kernel, both switched to RISC-V. ESP32 switched to RISC_V for all new chips.
Interestingly Synopsys's ARC's latest version ARC-V is RISC-V.
I think all major FPGA vendors now offer fully supported RISC-V soft cores either alongside their older proprietary ISAs or as the latest upgrade. Several (e.g. Microchip and Gowin) have included real RISC-V cores inside FPGAs.