When someone says someone is “quite the character”, they mean that he/she behaves in a way that is special , outside the norm, says or does unexpected things in unexpected ways. It can be positive or negative depending on if the person using that phrase likes the behavior or not.

I think you may have heard the other person incorrectly. He probably said something like “You are acting out of character “ which means that you are not like many or most people in your group. The fact that you prefer direct communication style as an Asian means that you are communicating in a way that is not the norm for many Asians . If that is what he said , then his comment is neither positive or negative . He is just stating a fact . Or reinforcing your point. I say this because there is nothing in your comment to him about preferring direct communication that would qualify as “you are quite the character “.

This could mean two different things, either positive or negative. If it has a positive meaning, it means the male speaker is saying that the woman is very interesting. If it has a negative meaning, it means the male speaker is saying the woman is very different or eccentric, but not in a good way.

I just know it as "You're quite a character", meaning the person is different, eccentric, but in a good way. Someone to remember, with distinguished characteristics.

I'd see it as a compliment. An individual, not someone who conforms to whatever crowd of people is around her. I don't see a downside. Unless the speaker only likes conformists - in which case, he'd be no loss I think :)