Several reasons:
1. As others have noted, "Huns" scans better than "Xiongnu" in the songs and rhymes with many more English words as well. In the Chinese dub of this movie (featuring Jackie Chan as Shang), they had no trouble with calling the barbarian hordes the Xiongnu.
2. The Huns don't have a lawsuit-happy anti-defamation group to take issue with the barbarians' rather bestial appearance in this movie.
3. They also didn't have much written history; the Huns didn't keep records. Therefore, Disney couldn't possibly contradict the Huns' histories no matter how it portrayed them.
4. Here in the West, most modern nations arose from Rome's collapse, and the barbarians everyone remembers for having brought about that collapse are the Huns. Not many have ever heard of the Xiongnu. Evil barbaric hordes with a familiar name equals more immediate accessibility for the target audience.
5. Who cares? Not the overwhelming majority of the kids in Disney's target audience, that's for sure. Not many of those kids' parents either. Eastern history professors might complain about all the liberties Disney took with China's history, but how many of them are buying tickets to these movies?
6. If the Chinese care so much about historical accuracy, they can make their own friggin' Mulan movie; which they did, in fact: http://www.imdb.com/title/tt1308138/
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