For our son (born in April this year), we also chose Chinese nationality to begin with.
To make things smoother for possible future changes in that, we chose a foreign given name that can easily be pronounced and written in (3) Chinese characters, and then used this Chinese transliteration together with my wife's family name for Chinese birth certificate.
My own consulate adviced, that if we later choose to apply for nationality and passport in my own country for him, we must use exact pinyin version of the Chinese given name, while family name we can at that time change (to my own family name).
So if, sometime in future, you want the child to have a foreign looking given name in his/her foreign passport, you may have to consider that already when choosing the Chinese given name.
I don't know if this applies in all countries, but at least in mine.
About dual citizenship, China's nationality law states that as soon as a Chinese national takes foreign citizenship, he/she will lose Chinese citizenship automatically. This is mentioned in article 9 of the law, with following questionmark:
"Any Chinese national who has settled abroad AND who has been naturalized as a foreign national OR has acquired foreign nationality of his own free will shall automatically lose Chinese nationality."
How the precedence of the AND and OR in that article is interpreted, affects whether this automatic loss of Chinese citizenship occurs only if the person has settled aboard (and acquires citizenship there), or always when the person acquires foreign citizenship voluntarily.
Now I understand that many people have both PRC and foreign passport, and nobody cares much.
The issue might be mostly, if that person faces legal issues in China, and the process or outcome may depend on whether the person will be tried as Chinese national or foreign national.
That's when the letter of law and its interpretation would be tested. While he may be holding a Chinese passport, his Chinese citizenship could be considered to have been revoked as soon as he acquired foreign citizenship, and he would be dealt with as foreigner from then on - furthermore he could face problems in face of China's law for having used Chinese passport "illegally".
The nationality law has separate articles to deal with renounciantion of Chinese citizenship by application. Article 9 only deals with automatic loss of Chinese citizenship.