I know that one set of bug fixes for PG 7.0.3 involved internationalization. I suggest downloading and installing that with the right switches, for starters.
Then ...
1. Test PG directly. Create a table with a "text" field, then insert and retrieve Chinese characters. Make sure that works.
2. Write a simple Tcl script that retrieves rows ALREADY IN THE TABLE, ns_write them, and see if you get Chinese characters out.
3. Then write a simple Tcl script to insert a literal string with Chinese characters - don't use your browser at this point, do it "by hand".
(try with nsd76 and nsd8x - 76 is much better for OpenACS in general because Tcl 8x has memory leaks associated with regexps).
4. At this point, if Chinese characters are working fine, you can try testing an OpenACS instance. If it fails, then it's time to start asking questions about the toolkit.
The above is just one approach to isolating the problem. Unfortunately, I don't have any experience with extended character sets and don't have a keyboard capable of generating random chinese characters.
The person at aD who's done most of the work has been Henry Minsky, as part of work that's been done for Japanese clients.