I think, this is not an uploading problem. You need binary mode for files with Unix line endings (LF only) and ASCII mode for files with DOS line endings (CRLF) if the server is a Unix server. You should better use Unix formatted files and transfer it in binary mode.
For Chinese characters you need Unicode. So you have to use UTF-8 or UTF-16. The important thing is that you have to tell all programs which interprets the file which encoding you have used. PHP files should have no BOM (byte order mark) but a meta tag which informs the PHP engine and the browsers about the encoding you have used. For an UTF-8 HTML file this meta tag is normally:
<meta http-equiv="content-type" content="text/html; charset=utf-8">
and for an UTF-8 XHTML file
<meta http-equiv="content-type" content="text/html; charset=utf-8" />
This meta tag should be the first line in the <head> area if the <title> also contains characters encoded in UTF-8.
The help of UltraEdit v11.20b contains a topic listed in the index as "UTF-8 BOM". This help topic explains the configuration settings for the BOM handling. I can't remember but I think this help should be also available for v10.20. The settings for BOM handling definitively also exists in v10.20.
For more infos about BOM and Unicode see the FAQ about UTF-8, UTF-16, UTF-32 & BOM