Yes, IDN is able to handle traditional and simplified Chinese variant and below is the matrix table for your reference.

Legends: TS : Traditional and Simplified Chinese words combination. ST : Simplified and Traditional Chinese words combination. TT : Traditional Chinese words only. SS : Simplified Chinese words only. X  : Variant domain name will be blocked from registration AND cannot be resolved. ?  : Variant domain name will be blocked from registration and will be resolved to the query i.e. when client query on TT and system will be resolved to the registered IDN i.e. TS.

In Example: Any domain name registered in i.e. TS if there a variant domain name search will happen in TT and SS while the query will be extended to the registered IDN which is TS. But if domain name search under ST, thus related search and query could not be resolved.