Yesterday reports appeared that that latest iPhone 2.0 firmware include handwriting recognition software supporting chinese.
Today Korean company Diotek announces that they have developed a new handwriting input method for the Apple iPhone.

DioPen can recognize Korean, Chinese and English/European characters and digits written in cursive and print or mixed cursive/print.
In addition to Apple iPhone, DioPen can also be easily implemented with other mobile devices with capacitive touchscreen as well as resistive touchscreen.

If Apple has selected DioPen as the developer for the new handwriting module found in the latest firmware 2.0 release is not sure at this point. Possibly we never know.
Via the Diotek site.