Perhaps a compromise where the in-laws could arrange a special naming ceremony to give baby a Chinese name.

While it won't be on the birth certificate, this may help them feel that they were listened to and that their culture was respected (if you're comfortable doing this).

I agree with a previous poster; this type of situation will set a precedence for your extended-family dynamic, but there's no reason everyone can't be happy if you meet in the middle.

Good luck!