I have tested with SQL Anywhere 16.0.0.2283.
CHAR / NCHAR collation: UTF8BIN
CHAR / NCHAR charater set encoding: UTF-8
The column is NVARCHAR.
The simplified Chinese characters are stored in the column and can be displayed correctly in SQL Central and InteractiveSQL.
For exporting them into an XML file: output to 'c:\test\output.xml' FORMAT XML;
The XML file that has been generated includes the correct simplified chinese characters.