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It might just mean that Galar is a composite of the UK and the Netherlands.
Unova was supposed to be NYC but it has some elements of China, Japan, and France.
Hoenn is supposed to be Kyushu and it is, but there are also elements of Greece and other places in its overall design.
I don't think there would be any point in making multiple regions out of Australia. The individual states aren't that distinct from each other culturally or geographically whereas in Japan you have semi-tropical Kyushu represented by Hoenn and cold, snowy Hokkaido represented by Sinnoh.
China's government probably isn't going to take too much issue with a Pokemon game being set in a region based on their country as long as GameFreak doesn't do something provocative like making the mascot legendaries resemble Winnie the Pooh characters (which they wouldn't ... for copyright...