You can manually install Chinese fonts if you disclaim your software warranty and install the Shell Access Package:
https://wiki.mobileread.com/wiki/Iliad_Software
And below is a script package that installs a Korean font on the iLiad:
http://irexiliad.textcube.com/82
You can install a Chinese font by replacing the mshei.ttf file in the package with a Chinese True Typed Font. The file name of the font must be renamed into mshei.ttf if you want to see Chinese characters on Mobipocket documents.
It is strongly recommended to install the "Unbrickable iLiad" package first, because handling the system fonts is very dangerous.
https://www.mobileread.com/forums/showthread.php?t=10225
I had bricked my iLiad several times while testing with fonts, although I'd unbricked it again by the help of the "Unbrickable iLiad" package. Thanks to hudson and Adam B!
Finally, be careful about the copyright of fonts. The mshei.ttf font included in the package is a Korean font (Baekmuk Headline) from public domain.