The impression that the Naurto series gives me is that it could be
set in a world where the Maoists managed to destabilise Imperial
China, but

Nitpick: The Maoists didn't destabilize Imperial China.
The Chinese Communist Party wasn't even founded until about a
decade or so after Imperial China became the Republic of China, and
by then the (latest) warlord era was in full swing.

What kept the USSR from taking over a China composed of city-states,
I don't know,

Possibly the same thing that kept them out historically.
Warlord-era China could arguably be described as (at least in parts)
being composed of city-states (whose armies where, from what I'm told,
frequently untrained, unenthusiastic and restricted to pointing their
gun towards the enemy and shouting "Bang!".)

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