Can I create text overlays in Chinese?

Yes. You can create text layers in Chinese using Cloudinary's image transformations.

Here's an example of a font style created with the Ruby command:

Cloudinary::Uploader.text("Chinese Sample",
                          :public_id => "chinese_style",
                          :font_family => "WenQuanYi Zen Hei", :font_size => 24,
                          :font_color => 'black', :opacity => 90)

Now this style can be used for generating a text layer in Japanese. For example:
http://res.cloudinary.com/demo/image/upload/w_240/l_text:chinese_style:%E4%BD%A0%E5%A5%BD%E4%B8%96%E7%95%8C,g_north,y_10/mountain.jpg

Supported Chinese font families:

• AR PL KaitiM Big5
• AR PL KaitiM GB
• AR PL Mingti2L Big5
• AR PL SungtiL GB
• AR PL UKai CN
• AR PL UKai HK
• AR PL UKai TW
• AR PL UKai TW MBE
• AR PL UMing CN
• AR PL UMing HK
• AR PL UMing TW
• AR PL UMing TW MBE
• WenQuanYi Zen Hei Mono
• WenQuanYi Zen Hei
• WenQuanYi Zen Hei Sharp