Yes, PRS300 can read chinese ebooks but you have to convert the files yourself or find readily converted ones.
It does not natively support chinese language so you have to either change the css in epub to use a chinese font. This font has to be transfered by you to a folder on the reader. Or you can look at font-embedded pdf files. There's also a hack to allow the reader to read chinese (txt, lrf, epub, etc) and have chinese menus.
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