As far as I know, VMware allow you to install a separate operating system (whatever you perfer). So if your main system is English, you can defintely install a Chinese version XP via VMware. (just make sure the XP installation CD is bootable). This is different than dual-boot as the VMware guest system reside on your hard drive as a huge file. Very convinient for those who want to install some stuff but don't want to mess up their original setup.Easy to backup too.
Good luck