This is a culture misunderstanding or translation miss. In fact, the Chinese dragon and wester dragon are 2 completely different creatures if they do exist.
Chinese dragon, or loong 龙 is a symbol of strength, power, fortune…it is said to have alligator’s head, dear’s horns, eagle’s claws, snake’s body, bull’s eyes…a combination of all the coolest animals in reality.
Loongs are said to be weather controller, unlike western dragon living in caves, breath fire, Loongs live in seas, river and lakes, they swallow water, fly into clouds and spit them down as rain, so Chinese loogn is god for peasants. Not always nice and friendly though, sometimes if someone did something really bad, and pissed off the local Loong, their village will suffer from drought, cause loogn would refuse to bring rain to the farms as punishment.
In agrarain age, it is natural people created such a creature to warship and fear. Ancient empirors were said to be 真龙天子, which means they were reincarnated Loogn, of course that was an idea to help them rule the people, but they had loogn on the clothes, in the palace, on the fornitures, even on the floor…and the empiror was the only one that had lawful right to do this (if a peasant, even a minister wear a robe with loogn on it, he would be killed for rebellion without a chance to explain.), that made loogn even more unique.
Western dragon.

Chinese dragon, or loong龙







BTW, if a knight killed a dragon in the west, he would be appreciated by the people, even get rewarded with a kiss from a princess. But if a Chinese guy messed with a dragon in China, he would be in big trouble.