So, I knew what you meant immediately, though I couldn't recall the author's name, either - but a little googling got me there! Anyway, I'm pretty sure the series you mean is Chung Kuo/The Middle Kingdom, by David Wingrove. It ticks pretty much every single one of the things you mentioned, aside from publication date, and I've got to say that, for anyone reading fantasy in the 80s and 90s, that cover stood out (or at least it did for me).