The correct behaviour isn't to "convert Chinese numbers into Arabic numbers", for several good reasons:

1. As you point out, Arabic numbers often aren't sorted correctly either - I've seen too many file listings with [1, 10, 2...], over the years and spanning operating systems.

2. Arabic numbers aren't inherently more correct than any other encoding. There are ways in which Chinese numbers have an advantage over Arabic ones.

3. Commas (23,000), decimals (3.92134), exponents (3.04e9), units (3.5 MB) etc mean it's even more complicated.

The upshot is that sorting numbers by the individual characters in a string is never going to be good enough. The answer is to convert the numbers, whatever their form, into binary numbers and sort those.

For some time now (since at least the days of Windows XP), there have been options for numerical file name sorting. But of course, everything that desktop software learned over decades has to be relearned on the web (even today, Google Docs does this wrong).