[Valiento]

I'm not entirely sure I'd call Jade Empire strictly 'Chinese' either, sure it's loosely based on elements from the ancient Chinese novel Outlaws in the Marsh and may contains elements from other Chinese legends, it's also very much contains aspects of westernized themes and Asian kung fu movies. Some of it pretty 'Orientalized' as well, and even a bit of steam punk. But I'd agree something like that wouldn't fit KQ.

On the opposite end I think visting a Chinese inspired land and cultures inspired from a combination of fairy tales and myths from western and from around the world adjusted to fit into that land's back history wouldn't be all that bad. The myths need to be obvious enough that they can be picked out by those who read fairy tales, even if they add a new twists to the theme. I'd say think how The Akira Kurosawa's Throne of Blood, a Japanese film, adapted Shakespeare's Macbeth into the world of the Samurai!

Think how KQ7 had an area that was more or less inspired by American southwest and northern Mexico, Aztec or Mayan. But adapted in several ideas from other cultural folk tales. The Jackalope for example being from American Urban Legend.

Or how the Swamp in KQ8 took partial inspiration from a Louisiana bayou, but other more fantastical things were adapted into it.

There are also quite a few actual Asian fairy tales and folktales that could be fun if adapted into the kQ world in some way. They could easily be adapted to fit whatever land the designers come up with, as they share many of the common themes of fairy tales/folk tales from around the world.

For example there is one that is similar to Tom Thumb in which a one inch boy leaves his family to become a warrior, carrying only a needle as a sword. He proves his courage to a warlord, defeats a demon by causing the creature to step on his needle hurting it and causing it to flee in pain. Ultimately he marries the warlords beautiful daughter!