As bout as dynamic as it gets. This all ties into the "Random Encounter" system. It's really quite amazing. I had heard that there are 50k npcs in the game. Deepending on who you are, and how you act around them they react. They don't talk about that much here, but this is an intro to the system.

In the past, we have talked about the the combat and quests in Age of Wushu, but there is deep and enriching system for building personal relationships between players and their circles. This interactive relationship adds a deeper element to an already immersive game. The Jianghu System attaches great importance to relationships by placing values on actions performed in game. These actions create a unique dynamic in the world.

Small write up here