You can have forums as sub-forums of other forums, but not categories as sub-categories of other categories, which is actually what you're asking for.
So "News and Announcement" wouldn't be a 2nd level category, it'd be a forum within the "Chinese Division", and then the "News" and "Announcement" forums would be sub-forums of that.
If you created this category :-
1. Chinese Division
And these 3 forums :-
1. News and Announcements
2. News
3. Announcements
Then they would all belong to category 1, but for forum 2 and 3 you would set the "parent ID" field to "1".
And it would then display like this :-
News and Announcement
Subforums: News, Announcements
Game Discussion
Subforums: Call of Duty 4, Some other Game
So yes you can group them they way you want, but I suspect they won't display quite the way you imagine.
Thanks for your explanation. That makes things clear. I think I'll have to take a step back and set the English Division as a Forum instead of a Category.
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