My new AWU2 has Chinese and China mainland as default country when I startup the watch for the first time and then press the I icon in the lower right corner.
With other watches I had my country where I live in as default.
Definitely true for me. Out of the box, band attached, and pairing process started in under 30 seconds.
If I'd bought a watch from a private party or unauthorized seller and found what you did I might be concerned about gray-market goods, but directly from Apple, especially during launch week, I wouldn't lose any sleep over it.