I can’t say about Mainland China, but I lived in Taiwan nearly 8 years, and in my experience, in general the Taiwan Chinese like TKD above all else. Japanese arts like Kendo, Judo, Karate, and Aikido are also highly popular. When I was there, kung fu’s popularity was way, waaaaayy down.
I was told that TKD is taught in the military. It used to be kung fu, but supposedly the government had been impressed by a TKD demo many years ago and switched to TKD.
I worked part-time at a martial arts supply company in Taipei, and the boss would sometimes exercise in his parlor (in back of the shop) performing Kendo chopping strikes with a bokken (wooden sword). He knew I practiced kung fu, and often asked me, “Why don’t you practice Kendo? It’s more useful than kung fu.” This from a Chinese man to me, a Japanese-American.
I can’t cound the number of times I’ve overheard Chinese say about kung fu, "That’s just hua chuan hsiu tuei (flowery fists embroidery legs); taekwondo is what’s useful. And you always see kids in the late afternoons in Taipei walking to their TKD or karate lessons wearing their doboks/gi’s. There is no stigma. But it seems most Chinese associate kung fu with gangsters or low-class people. Plus, they prefer the neat white uniform.
I suppose the feelings in Taiwan toward the Japanese is sort of a love/hate relationship. Many older Taiwanese speak fluent Japanese, sometimes much better than they speak Mandarin. But since Taiwan was a Japanese colony, some influences, such as a lot of Judo and Kendo, remain.
There was a kung fu master in Taiwan who once said, “In the near future, we Chinese are going to have to learn kung fu back from the foreigners in America, Europe and Japan. Our own people don’t care about it anymore.” I couldn’t say whether the situation is that dire there, but I think his words spoke volumes about the apparent apathy of most Chinese towards kung fu training.
PS: The only thing “Chinese” that seemed to match TKD’s popularity (or exceed it, among adults) was the bizarre types of qigong that became popular in the late '80s/early '90s.
Jim