I was quite surprised to see the following from this web page: Enrolling Binational Children in Beijing International Schools: Immigration Law Issues - U.S. & China Visa Law Blog | Chodorow Law Offices
I find that website to be a really good and reliable source of information, thus I was really surprised to see them state this when I had believed previously that - if both parents are Chinese, then - both Chinese parents had to be settled abroad for the child to fail to receive Chinese nationality.(1) no Chinese parent has settled abroad;
The website is run by actual lawyers who specialize in immigration matters, particularly in China<->US immigration matters, so I'd expect them to actually know about matters like this. (That is, they have actual and direct experience on precisely this issue.)
Actually, I think that I'm still in a state of shock over this.