xterm is an X11 terminal emulator, where you run text applications like less, vi and mc.
cxterm is an enhanced xterm that understands the Chinese character set and keyboard. It comes with the fonts needed and other tools, (such as cvi) which work with double width/height multi-byte characters.
hztty is a separate module, included in the main distribution.
/cdrom/X11/xutils/terms/Chinese-Tools-1.2.XFree86-3.1.tgz, (sunsite disk4) is pre-compiled for your convenience, and arranged so that you install it directly from the '/' directory, not /tmp/pkgs_cd. Slackware does the same for its tgz files.
There are different versions, 1.1 has more docs, 1.2 is more tempting! The 1.1 is in the wrong place on the CD: /cdrom/apps/.
cd /cdrom/X11/xutils/terms tar -C / -vxzf Chinese-Tools-1.2.XFree86-3.1.tgz
I installed one of these, and got a cxterm that behaved like an xterm, but also displayed Chinese glyphs, and had some sort of F3 key, that switched between different keyboard interfaces. Not knowing anything about chinese, I left it.
Apparently, there are different byte-code encodings for chinese 'big5', 'hz', as well as different keyboard techniques. If it means anything to you, the (english) documents should make sense. I got so far with them, I guess you would get further.
There is a chinese news group you can subscribe to, but it is general news in chinese fonts and character sets (not about cxterm). You can also read this using netscape.