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Per patch committed inI propose it be revert back to alpa spellings.
This is not a cultural issue but as a result of this patch all locations tagged in China now display in Chinese characters.
I feel that if this feature is required it should be accomplished using the locale module.
For example if all locations in Russia are written in cyrillic , or Israel in Hebrew,
If each country in the location module used their native language it would make it difficult for the users of the site, to clearly understand the location that is being shown by Drupal.