What drew me in

I understand your dragon uses it/ne pronouns? Very interesting. Don't let anyone convince you not to do this, please. It's a good thing your story's got going for it, and not something many stories will have at all. It's also something that will mean something to some of your readers - nonbinary people rarely get their own heroes, and even if your nonbinary hero is a dragon, it's still good to have something to identify with.

What almost sent me running

You keep calling Ryu an 'Oriental dragon.' I get what you're saying here, but I was under the impression that 'Oriental' was an old term that's fallen out of use. I might be totally wrong on this, though! It's not really my lane.

What kept me there

Your story is incredibly thought-out and interesting without being over-complicated. From what I've seen in this synopsis, your characters are complicated and original. i'm looking forward to reading this!

Setting

Your setting sound fantastic - mysticism and Eastern dragons. Old faiths realized and a world that seems ripe with adventure. While writing, definitely remember to describe the surroundings every now and then when you get a chance. I bet this is a beautiful world.

Characters

Ryu seems interesting - ne has motivation, flaws, and friends. The last of which, I think, will be the most important as this story progresses. With tales of adventure, it's even more important than it usually is to develop a strong friend group with your main character. There needs to be something to fight for beyond an idea when it comes to adventure stories, and it sounds like you've got the foundation for that with Sandi and Shin.

Final Thoughts

Have you considered partnering with an illustrator? This story seems like something that would seriously benefit from illustration. Your setting is so vibrant and lovely! If you do want to partner, I could probably help you out! I run a diversity-centric scifi/fantasy literary collective geared towards connecting storytellers of different mediums.

No matter what you decide - this is an interesting premise, and I look forward to reading it.