Chinese collation is complex, not least because different Chinese-speaking regions have different customary collations. The KangXi order favoured by Unicode standards is rarely used in any region, except in dictionaries.
Liangent has prepared a core branch which allows multiple category collations to coexist on a single wiki, with selectable sort order on category pages. I helped develop the architecture.
One of the collations considered essential for Chinese wikis is a latin sort of the pinyin transliteration. We will need to upgrade to ICU 4.8 to support this collation.
This bug tracks the tasks needed for merge of the chinese-collation branch and the deployment of a suitable multi-collation configuration on the Chinese Wikipedia.