In Secondary School I did a whole project myself on Buddhism.
Funnily enough, my parents who refer to themselves as Chinese Buddhists did not know a lot of basic Buddhist principles from the original theology, though they got the bigger picture. Reincarnation, different planes of existence, cause and effect, etc.
The underworld/afterlife in Chinese mythology is nothing like the Abrahamic idea of "You either go to Heaven permanently, or you go to Hell permanently". With no middle ground.
It is based on Buddhist cosmology, where the underworld was simply a "passing through" point, and based on your karma you could be reincarnated into a higher plane (Heaven/Tian, where the Shen/Devas live) or lower planes (Realm of Hungry Ghosts, or even the Hell planes). And it is ruled by King Yama.
The famous Chinese Triad film "Infernal Affairs"... its name in Chinese means "The never-ending way" (無間道
. Which is the Chinese term for Avici, which is the lowest of the Hell realms in Naraka.
I feel that reincarnation is much more forgiving and reasonable than permanent Heaven or Hell depending on what you believe in. Reincarnation gives you second chances. Even Avici is not permanent, there is still a chance of getting out.