His standing is not higher than the emperor. He serves the emperor. BUT...the emperor clearly fears him. So, either it's because the State Master is so powerful or has something on the emperor. I don't know what the deal is, but socially, the Emperor comes first. I'd like to know the back story on that one.
Well, it probably has to do with the wings the state master sprouted. Like, he doesn't seem to be human. Maybehe's some kind of intelligent "spirit beast" with a human form, and the emperor fearing that power (or at least wanting it) offered him the position of state master to keep him as an ally.
I'm wondering what the title of state master actually entails. I mean, apparently his standing is higher than even the emperor. I thought the emperor was the highest position.