Right, that reflects the mixed status. It is an ORIGNALLY Japanese, Chinese territory. The other versions tend not to have complex NOs or limitations (such as reference to ORIGINAL, or mixed/ownership territories) because they don’t have complex diplomacy or teams that break rules like China.
Not enough Nat’list flags? Shoot, Japan’s empire grows so big in most games that someone in our group laminated and printed more Japanese control markers!
The only thing a new player needs to remember (when they are playing China at least) is that Chinese troops can pour out of those lands, which is usefully coordinated in time and turn order between China and its helping Allies with normal rules.