Regarding using chinese characters in your domain name

I recently bought a domain with chinese characters because I am building a site about a small town in China. This website I’ve started making in swedish and english. I am now trying to build up a chinese site in Puthongua or simplified chinese and then want the chinese characters in the domain name. However, I suddenly got problems with one of the webhosts and are not sure why. The technical staff on the webhost say that the domain name is to long :=| . I see domain names that are very long on the web so I have no idea what the problem is. I assume they are using latest apache with latest php because it is one of the biggest webhosts in my country.
I appreciate if someone got an idea on what is going on here.

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