Yes, you can use the iPhone's built-in Chinese character tools to enter simplified or traditional characters through a Pinyin keyboard or through a drawing tool. Follow the steps below to enable the functionality:
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Step 1 - Press "Settings"
Step 2 - Select "General" Settings
Step 3 - Scroll Down and Select "Keyboard"
Step 4 - Select "International Keyboards"
Step 5 - Scroll to the Bottom and Select Your Choice of Simplified or Traditional
Step 6 - Turn on the Handwriting Keyboard
Step 7 - Press the Globe Button Until You See the Handwriting Keyboard
Step 8 - Draw Your Character and Pick from the Possible Matches to the Right
Step 9 - Run the Search and View the Results