It's hard to read a book like this as a piece of literature and not as a window into some kind of historical or cultural truths, and my positive reaction is mostly on its successes as the latter, though unless you have a China itch to scratch I think it won't resonate too deeply. In any case, it's very well organized and annotated, and some of the stories are fun, both epic and ridiculous at the same time.
A collection of tales from China, with notes about when collected and the types and motifs involved
More legends than in many such collections I've seen, partly because the tales often end with the observation that this character or that was made divine for the events of the tale. "The Water Mother", for instance, is the familiar type, like "Why the Sea Is Salt" or "Sweet Porridge" where magic that produces good stuff is let to run wild, but it ends with the observation that the woman became the goddess the Water Mother.
Some of the tales are in fact just bits of folklore, such as about "elves" (all the beings less than gods have had their terms translated to equivalents).
A good number are recognizable types, but only in the deep structure; local color here produces more variation from European tales. "The Mason Wins the Prize" is "The Devil's Three Golden Hairs" but the mason is on a quest to find the three things he was sent to find before marrying, and that's what the question garners him. There are two swan-maiden-like tales, but one is of a woman who came out of a painting and finally went back in. "The Witch's Daughter" flouts Chinese customs to produce a tale "The Girl Helps the Hero Flee."
There's also some definite signs of Communist influence, since they encouraged peasant heroes and heroines. One tale included, only found once in China, was of a peasant outwitting a feudal lord by agreeing to halve the crop -- the lord gets the top or the bottom, and the peasant naturally plants root vegetables or wheat as appropriate. A common European tale, and probably introduced deliberately.
This was a really interesting collection of folktales. They manage to fit quite a few in here and it's definitely better organized than many folktale collections that I've read. However I cannot say that I would recommend this as an introduction to chinese folktales esspecially if you are not already familiar with elements of chinese culture.
The reason for this is that there's many terms that are likley translated differently so a western audience can understand them better despite the fact that many of these terms and description alterations don't make a lit of sense in a chinese context. The use of the word witch in one of the stories being a prime example. Esspecially when after only a few times using it it goes back to the more accurate term of calling the woman in the story a spirit.
There's also a few of the folktales that I was already familiar with such as the cowheard and the weaver girl that the version they tell in this is a really odd one that despite knowing many different versions I have not heard before.
Again this was a really good collection but I wouldn't recommend it to someone that is not already somewhat familiar with the context in which these stories are told.
I'm predisposed to like folk tales a lot less than I like legends, as they often feel too inconsequential. Some of the stories in here were pretty interesting actually, but others had strange structure, ending abruptly and not really seeming to have a point.