There are different ways to type Chinese.
1. MS Pinyin--> I use this one at work.
This kind of system doesn't reuire special keyboards. For example, if you want to type "Hello" in Chinese, which is "Ni Hao". You can just tyep "Ni Hao". Your key stoke will be n-i-2-h-a-o-2.
(The number stands for the tone; there are 4 tones plus one netural tone). Then the computer will automatically choose the best word for you. If not, you can change from the list.
2. Taiwanese pinyin (Phonetic)
This kind of typing requires special keyboard, which shows the symbols on the keyboard. The idea is similar to the first one, however, instead of using alphabets, Taiwanese pinyin has its special symbos to stand for each sound.
3. Chang Jie
This kind of typing also requires special keyboard. The special symbols on the keyboard stand for the part of a character. Chinese characters is composed of one or more components.
If you use the first and second one, sometimes you need to change the character the computer chooses for you because in Chinese different characters share the same sound.
Source(s):
Myself, typing Chinese every day.