Mulan's family seems to have a pretty sweet setup. They have a gorgeous backyard, complete with shrine to their ancestors. Not only do the ghostly forbears hang out in that shrine, but it's also equipped with several family guardians. We only meet Mushu, but that's because he's been disgraced and kicked down a notch, like a detective getting busted down to traffic cop.
As we discussed before, Mushu's original job was simply to awaken a dragon slumbering in stone. This "grand dragon" seemed to be the most powerful family guardian, of which there are several.
So, not only do dragons exist, but there's apparently no rule against having multiple dragons per family. Though you'd expect Mulan's prestigious home to maybe have a few more guardians than normal, it seems likely that other families in the area have guardians as well. Everyone household in the area was called forth to send one of their males to war. What better use for a protective guardian than when sending a father or son off to war?
There should be tons of Mushu-type characters darting around the camp, but we never see any. They're probably not so small that they can hide inside clothing. And it's not like the guardians are particularly worried about being seen anyway, as Mushu stands openly in front of thousands of people at the end of the movie.
Heck, if you count Mulan II (which in general is not a good idea under any circumstance), it's made clear that other families do have their own guardians. Seems like they're all going to waste, especially since China is so short on soldiers.
Maybe it's a budget thing. For a movie that is supposed to depict a war in a country as huge as China, there sure aren't that many soldiers. We're at the point where the Great Wall has already been built, but we rarely see more than a handful of armed Chinese ready for war.
Here, compare what we see during "Make A Man Out of You," a.k.a. the catchiest song in existence.
Not a bad amount, right? We're talking dozens of soldiers under Shang's command. The training camp itself looks as though it could probably hold hundreds of surly soldiers voiced by Harvey Fierstein.
And yet, by the time that we're done with the avalanche, Shang's crew is down to eight or nine souls.
So where did all of the other soldiers go? If they perished in the avalanche, there certainly wasn't any period of mourning, or even a mention of their fallen comrades. Even if we assume that the rest of the gang died or even deserted, there's still the matter of the situation at the emperor's palace.
Okay, so there's this huge festival, attended by thousands, and the Emperor of China shows up... completely unguarded. When he learns that the Hun are invading at the beginning of the movie, the Emperor commands his troops to defend his people rather than protect the palace -- but that shouldn't mean "everyone of note please abandon the most important person in the nation."
Again, there are thousands of people in the crowd, but when all hell breaks loose Shang's crew seem to be the only ones around capable of defending their leader.
At the very least, you leave a few dozen guards around the palace to keep the peace. As it stands, this is like calling in three members of the A-Team to protect the entire White House. Which admittedly does sound pretty awesome.