Orientalism, that essentializing exoticization of the East is, we all know, a deplorable thing — but those of us who have been drawn to Asia know something else, too. We know that it was often the crudest Western representations of Asia and Asians — the Chinese restaurant with the cheesy decor and dishes as outlandish (compared to mom's meatloaf) as chop suey — that sparked our interest.
This sort of kitsch, however, can intrigue not only naive Westerners, but also other Asians. The Japanese, for example, have long enjoyed tales of ancient China, a big brother seen by some Japanese as more Asian than the archipelago, and thus a likely site for wise sages, recondite philosophy, and, of course, the odd dragon.
Though we can only speculate as to Atsushi Nakajima's reasons for choosing to set his stories in China, it's hard to imagine that this sort of orientalism didn't play into it. Those not absolutely averse to this view of Asia, or who are willing to excuse a bit of orientalism when it's between Orientals (as Asians used to be called), will enjoy Nakajima's take on the mystic East.