In this game you encounter two important characters whose names are Ning Caichen and Xiaoqian. Those names are taken from the short story "Nie Xiaoqian", written by the famous Chinese author Pu Songling (1640-1715). There seems to be no connection to the actual plot of the book (a love story between an ordinary tax collector and a dangerous fox-girl), but it is possible that this story would have been implemented if the game if the planned Chapter 2 had been developed.
"Xuanyuan Jian" means "The Sword of Xuanyuan". Xuanyuan was another name of Huang Di, the Yellow Emperor, a legendary figure who is traditionally considered to be the ancestor of the Chinese nation.
"Xuanyuan Jian" is the first role-playing game developed by a Chinese (Taiwanese) company. Even though the game utilized Japanese gameplay mechanics, it was also the first RPG that was set in ancient China. In this game, the setting is not concrete, and the story is based on myths and legends which date back to pre-historic times. But each one of its sequels was set in a concrete historical epoch, and was based (no matter how loosely) on true historical events.