When Fang Zheng followed James to the Hong Kong Base, the entire base was already on high alert. Even though they were psychologically prepared, the sight of the Giant Dragon blotting out the sky still made them shiver uncontrollably with fear.
Fang Zheng neither subdued his Dragon Might nor chose to transform into a human. Being human himself, he was well aware of human psychology and thoughts. Indeed, if he could turn into a human, perhaps he could generate a sense of closeness with the people of this world. It's just like how many people would shiver with fear at the sight of a Giant Dragon, but would only cry out "adorable" if that Giant Dragon turned into a cute little girl. Even though the essence would be the same, differences would arise because of the outward appearance.