Unicode represents chinese/japanese/vietnamese/korean using the same range of codepoints, therefore there is no robust way to transliterate those codepoints for those languages. What calibre does is use your calibre interface language, defaulting to chinese for all languages other than japanese/vietnames/korean. The transliteration algorithm used depends on what language you have set in Preferences->Look & Feel->Choose language
And it is important to note that changing that language will not cause existing folders in the library to be renamed, it will only affect future books added to calibre. You can always force a rename of existing folders by using the search and replace tool in the bulk metadata edit dialog to add some temporary suffix to all titles and then remove it.
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