It's cherished in China and well thought of in Wales (6)
I believe the answer is:
dragon
'thought of in wales' is the definition.
'dragon' can be an answer for 'thought' (dragon is a kind of thought). I'm not certain of the 'of in wales' bit.
I don't understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for dragon that I've seen before include "Teutonic mythological creature" , "Reptilian monster" , "battleaxe" , "Seventeen [HARRIDAN]" , "It's red on the Welsh flag" .)