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The first nation in the game is called Mondstadt which is moon city in German. 
In Japanese place names and even personal and family names have literal meanings, though I guess that used to be true for all languages but our language evolved over time until the name was distinct and had no literal meaning any more.

So for example, Sakura is a common girls name and it's also Japanese for Cherry tree, Hana is flower and is also a common girls name. Tokyo means eastern capital, Shikoku means 4th province and the Japanese name for the planet Neptune is Kaiousei, meaning Sea King Planet.
This carries on to fiction as well, Konohagakure the main village in Naruto means Village hidden by tree leaves. Often they apply this same logic to foreign names by using foreign words as well.
Anyway, Genshin Impact is actually Chinese but China does this too only in China it seems to be even worse, Genshin impact is actually unusual because usually in an English release they just translate the name of any area to English, so they would just translate Mondstadt as Moon City. But they did not this time. Though they do name areas in the game like that as well like Starfell Valley and Bright Crown Mountains but that is not so rare and English games could do that as well.