if you ever have a question regarding the legality of any domain issues, you can always refer to the ICANN website.
ICANN - Internet Corporation for Assigned Names and Numbers
These guys hold the registrars for most every TLD you come across, but not all of them.
I'm not sure what china's policy on domains is, but I know that ICANN could not possibly control them. The email looks like a hoax and for more in depth checking, go to google groups
Google Groups or just go to google and look up this sort of issue with .cn's I can't see how this could be real but if you need to check there are your sources.