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I don't think so.
As in the test link (picture)in this post, the author already post an airticle with Chinese tags.
So I think blockchain supports Chinese characters (encoded with unicode or UTF8?)
The same situation for other mutli-characters Languages.

The only thing need to be handled is how to present them in UI.
Do you have some ideas to support it in esteem?

Oh right I should have said they should be encoded in UTF8.
But UI should handle transliteration, with eSteem you can make post with Chinese tag. Representation requires transliteration.

UI transliteration is easy... Problem now is the query with STEEM API (e.g. 'get_discussions_by_trending'...) doesn't work with UTF8... so if we want to explore the blockchain data with UTF8, we had to find other method.

if steemit developer team could loosen up the query string format of Steem API, then the language barrier can be solve immediately.

IMO, the format/restriction of tags string (e.g. lower-case only...) should be handled by front-end apps, not the underlying blockchain nodes or API.

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