Cherished in China, it's well liked in Wales (6)

I believe the answer is:

dragon

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'wales' is the definition.
Although both the answer and definition are singular nouns, I cannot understand how they can define each other.

I can't explain the rest of the clue.

Can you help me to learn more?

(Other definitions for dragon that I've seen before include "See 7" , "chased by addicts" , "Fire breathing mythological creature" , "Fury" , "St George is said to have killed one" .)

I've seen this clue in the Evening Standard.

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