It is perfectly acceptable to cite sources in another language. In fact, citing a source that you have used, even if it is in Chinese, shows your integrity and adherence to publication best practices. This will not affect your chances of publication in any way. However, you must remember that there has to be a good balance of references from both Chinese and international English language journals. As long as you are using an adequate number of references from international journals as well, it is fine to have cite a few Chinese sources.
However, citing literature in a different language within an English paper can be a bit tricky, and you should follow accepted conventions while doing this. Check your journal guidelines to see if they have suggested any specific style of citing foreign literature. Generally, you should provide the original title (in Chinese script) along with the title using English alphabet. This is known as transliteration. The APA style guide provides detailed instructions on citation styles for foreign literature and translated literature as well as transliteration requirements.