You can draw all the parallels you want. Certainly Wutai is inspired very obviously from Asian culture, but that does not make Yuffie Japanese, Chinese, Korean or any of the above. She's Wutanese (?). It's one thing to identify the real-world origins of elements found in Final Fantasy VII. It's another entirely to then extrapolate that identifying characters or objects within the world of FFVII as parts of that inspirational culture.

This is why that although Sora may appear to be Caucasian, his name is a Japanese word and in the diegesis of Kingdom Hearts, it would not make sense to give him an English last name such as Smith. It's the same thing with calling Cloud German. It doesn't translate properly from an imaginary world to the real world.