It sounds like “village” is being used as a term of art, rather than in its standard usage, which is “a municipality smaller than a town, which is smaller than a city.”
Again scale - in the west we are used to villages consisting of hundreds or a few thousand but the US population is barely a third of China’s which makes all the difference in the expected population size of a village.
Standards of scale expected in the US, with a population of slightly over 320 million, are different from standards of scale existing in Asian countries with populations over one billion.