Yeah, no doubt she's being a prick -- "I understand it's a difficult language" -- obviously being sarcastic.
But he's arguing that the law be more lenient to Chinese people -- sorry for taking the minority stance -- but he's wrong. She's asking him to go off and come up with a solution, but I don't think that's the right one. I think the right one is that if one has more than one name, there needs to be a way for the system to handle it. I realize that's more work for everyone involved (both the bureaucrats and the people with multiple names), but it's the right one.
Of course, I live and work in a world where I have to explain in triplicate every time I fill out a form that I don't have a middle name. In my world, there's a place on most forms that says, "other names or aliases you have gone by". And no, I don't work for the penal system, though sometimes it feels like it.