Monkeypants: Sure, sounds fantastic to me! I'd assume that, what, the dwarv- I mean, Guan - were originally neighbors to the Fay, who in turn subsequently abandoned the Guan when the Laujin came knocking?

Add some myth and legend coupled with the occasional rumor from actual sightings, the Fay having a soft spot for the Guan and generally acting nicer toward them than anyone else, and I think this could go somewhere.