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One thing I have noticed is that for some reason Chinese moral is handicaped vs European Moral, is there somewhere in the save or something where this can be modified? Edits to the watk map and cultures/cores can only go so far to make China balanced with Europe.
There is no "China-specific" handicap. If they have lower morale it's because of low tech, DP slider settings, or bad monarchs. If you give a morale bonus to confucianism, keep in mind that it will also affect Korea, Manchu, and Japan. See the FAQ for morale info: http://www.europa-universalis.com/forum/showthread.php?t=139522 . (Don't know if there have been any changes to morale in 1.09.)
Right. I've played China a bit. There's nothing wrong with them morale wise. What makes them difficult are the revolts in the early 1600s ... and even those are survivable.
I've played China and i've also seen it developing as AI and they're pretty easy to play. You can crush the revolts if you keep armies is strategic points of your country and even in China techgroup and beeing Confucian you can tech as the same speed or even faster than the Euros. I've seen a China with 12/11 in land/naval tech in the 1500's, when even the Ottomans haven't reached 9 in land tech (This was in AGCEEP/WATK).