First, a matter of naming. The "Kindle 4" around these parts refers to the non-Touch model (because it runs version 4 of the firmware). The Touch model is generally referred to as the "K5" (because it runs v5 of the firmware) or "Kindle Touch" (or "KT").
The KT is an excellent reader. Good build quality, significantly smaller than the K3, and it works very well indeed. The new "KF8" file format which it supports allows for embedded fonts, so if the fonts built into the device don't support Chinese (and I have no idea whether they do or not) you could convert your book to KF8 format and embed the required font in the book itself.
I've had a KT since November last year, and I think it's the best eInk reader (for my needs) currently on the market.
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