Choyee_Lin
It was done a few years ago actually. Webnovels original subscription service. The problem being authors didn't make much of anything off the service. Its like being asked to build a house but rather than being paid by the hour you only get a one time payment of that hourly wage.
Its just not worth the time and energy.
As for it being cheaper in China... of course. There's no need to translate anything so they just buy the volumes as they are released. Thats the kicker. There's a person being paid to translate many of these books from Chinese to English and being a company, its not a labor of love, rather its a paid position.
Though this point is becoming more laughable as more recent titles are rather obviously being mtl'd...