Yes. By simply using a chinese font like SimHei.
You need to have, of course, at least one chinese font installed. But some are standard even on a german Windows 7. Indesign usually installs additional fonts which may include some CJK.
In order to type chinese letters, you need to do as usual with the Pinyin input helper.
English-language InDesign comes bundled with some very good Chinese fonts — I hope this is also true of European versions. These fonts have Adobe in the name (AdobeFangsongStd-Regular.otf, etc.), and ID's font list places them in two categories towards the bottom. I generally prefer the Adobe fonts to those bundled with Windows (such as Simhei) and OSX. CJK characters can be entered by typing or pasting from the clipboard. Typing Chinese requires installing that capability in the operating system; this is simple enough but I recommend sticking with copy-and-paste unless you intend to type seriously, as the input methods generally appropriate some key-stroke combinations and thus can complicate non-Chinese keyboard operations. For typing extensively, shape-based methods such as cangjie and wubi can be much faster than pinyin because they avoid having to choose from a list of homophones.