The title of this article makes it seem like there's going to be some somewhat racist undertones or something like that, but that doesn't seem to be the case as far as I can tell. It just looks like it will be exploring some old Chinese stories, and I don't know if anyone from "the west" that would have a problem with that.
I guess the real problem would be that people wouldn't get references. I know any anime that involves historical figures or legends I don't get a lot of the jokes and references. If a major portion of the entertainment value is from references you can easily alienate foreign audiences. If it's a new, alien, story it could be pretty cool, though.
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