[That's supposed to be a joke, isn't it? He can't help but laugh along with her.]

Oh that's a good one, really funny! But... no, King Kuei hasn't been ruling the country for some time now. It's now Queen Hou-Ting, and she is not a nice lady. [And then in something of a whisper, he adds:] But I kind of wish he was; he can't have been any worse!