How would you approach Elves in China? Especially if we say they do ultimately stem from the "west", whatever that means in universe.
Elves are overdone, though I'm also a lifetime LOTR fan buying all the hard covers. Based on how they are potraited in myth and folklore, Elves may be put as a sub-race of fairies (Yosei, Yaojing,......). The latter is more common (which means immersive) in cultures and also well-known. The two are more often asscociated anyway, in many games, fantasies, tv-series, etc...
On the other hand, as Eldars likely the representation of culures/magics related with nature + strong fighters + friends of animals, I think they fit the stereotype of Steppe Nomads.
Chinese elves can be migerated tribes spin-off from where they originated in the west. As elven history (in most designs) longer than human and always have some Luddite characteristics, it isn't a surprice to see some of their kinds are technologically less advance. War-like elves could be those had to fight with southern human empire for space and pride (they're likely be pushed to the "steppes" by ancient human advances). Peaceful tribes can be those live near eastern forest lands and have been communicated with Chiense "Alchemists/Cultivators". In-turn, their longevity inspired the eastern people to search for "Immortality".
Come to think of it, there can well-be elves living inside a fantasy celetial empire, India, Japan, Korea and beyond. Posing themselves as "Immortals (仙人)" or hindu/buddism related term "Rishi". They and their "clans" could be those who leading cults and faith that are tolerated by imperial officials (or their fantasy counterpart), behaving like monastic groups of human culture. As those groups/cults are considered somewhat masters of some techniques, and often liked by rural people while living near nature or great mountains/lakes/river or etc. Which also fits the description for elves.
The identity could flip, which is how historically jurchen tribes built their Jin and Qing empires.
Population-wise, nomadis aren't exactly known for population anyway. Elven nomads could even make more sense as elves are potraited mostly as a race stronger and more resilient than human. These advantages make their thrive in hostile steppe enviroment making even more sense.
With Nomadic elven occupying the steppe regions, the Animal-people above could be assigned to the south. Occupying locations with culture and terrain resembles the southeastern asia, interact with fantasy India, China and local human cultures. Some may travel to fantasy Japan and Korea and settle there.
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