TheCaffinated There are some but unfortuantely based on my knowledge most of them are pretty scattered and many of them have to sorta "mingle" their products with Online Literature Works from platforms like WebNovel to survive. Simply from a business model point of view, theirs are quite similar to Kindle/Kodo.
But I still feel like in China paper books and web novels are so seperated, not just they are in "different medium", but the contents, writing styles, major schools and audiences, too (for details you can check my 101 in the link at top of this thread), unlike in western countries I think for you guys paper or internet or not, they are books all the same, simply in different forms. So in my opinion, the problem platforms in "Kindle model" face in China is that they keep wavering between the readers of web novels and paper books and couldn't decide, thus looking very awkward, and many of them already slide to the Online Literature Platforms like WebNovel.
Another problem maybe the poor IP protection in online literature platforms. It is a problem of poor education about copyrights in the general society, of course, but I've shockingly heard from several writers from Qidian recently that instead of helping writers to report pirated novels, the platform actually sells the novels to pirate websites thus taking a share of profit from it, and some of the management crew even hold stocks in these bloodsuckers. So these kind of problems also spook the writers of those "full self-published novels" and they would rather print their novels into books.
P.S. Ever since I came abroad lots of writers I know in China have exposed lots of dirty stuff like this to me, hoping I could tell you guys overhere where the "freedom of speech" is protected, but I'm hesitating. First I think many of these stuff are simply impossible to happen under international regulations, so putting them here on WebNovel platform maybe a little unfair to WN because it may dampen your impressions of it further unnecessarily, secondly (mostly really) because this platform is so China-minded that I'm afraid if I "overstep my boundaries" they will still find a way to do something to me :D I don't wanna get assassinated.
As for state censors they are a general limitation on all literature works, I don't really think it specially affects this type of platforms you are asking.