So back to the German/Chinese issue.
I read the Set II Checklist again and it specifically points out that giving a Chinese army the sdkfz 222 is for scenario play. I think this is just a general rule of thumb for scenarios: if country X had unit Y but unit Y belongs to country Z, just use it in your scenario as country X anyway.
That’s the beauty of this game.
I’m going to start a new thread about Sino-German relations.