China or Chinese?
Personally, I feel it should be 'Chinese', but actually it is 'China'.
China or Chinese?
Personally, I feel it should be 'Chinese', but actually it is 'China'.
"China Academy of Engineering Physics" sounds no more odd than, say, California Institute of Technology (Cal-Tech) or Massachusetts Institute of Technology (MIT). It is perfectly fine.
We have the United States Institute for Theater Technology, the American Institute of Physics, and the National Institute of Standards and Technology, among others. No one would suggest that any of them should be renamed based on English language and usage.
As native English speakers, we may have a subliminal bias toward using the word "Chinese" in this instance, but the "China Academy of Engineering Physics" sounds dignified and proper, especially since the OP has said that is what it calls itself. What we think it should be called is irrelevant.
It is the name of an institute. You quoted a direct speech which refer to China Academy of Engineering Physics, a research and manufacturing center for Chinese nuclear weapons. It's the name of this institution given by the Chinese authorities. We would call it what it is even if the usage may sound unnatural to us (Thanks for the suggestion, Mark Hubbard).
Just like we call you J.Bates not Jon/Jack/Jully Bates.