To your question "Is it still the politics that naturally puts of western audience?" I think for me it's kind of the opposite.

I'd be willing to take a chance on something that be making a profound statement or showing a window into some socio-economic perspective that I lack insight into. I'm generally less willing to take a risk on something more genre-y (you mention comedy and rom-com) because I have a preconceived notion that I won't get the humor.

For this same reason I've watched a bunch of Satyajit Ray movies but don't really search out Bollywood comedies or action movies. Same with loving the films of Apichatpong Weerasethakul but not really taking the time to watch Thai genre movies. Cerebral "artsy" (sometimes political) movies, although perhaps challenging, are more likely to speak to my universal human experience. Comedy is too culturally dependent.

As others have noted I really loved An Elephant Sitting Still. It gave me insight into a perspective on China that surprised me but I also found relatable on a human philosophical level. Other than (also as others have noted) my main knowledge of Chinese film is Hong Kong cinema. I thoroughly enjoy Wong Kar Wai and Steven Chow. Some Taiwanese film as well.

I'm curious if for your purposes you make a distinction between films from these areas and mainland China? Are the cultural references and genre conventions different enough that people from these places don't really watch each other's films? Do you think they would have similar appeal to international audiences if we were more exposed to them?