The Chinese stealth armor is a light armor that grants the wearer a sneak bonus of +5. It is repaired with recon armor, or with other Chinese stealth armor. Unlike the Chinese stealth armor from Fallout 3, there is no invisibility field. The lower durability and lower DT also makes the recon armor more appealing. However, recon armor is considered 'Medium' armor and therefore reduces walking speed and ability to sneak well, while the 'Light' Chinese armor will not.
Two suits of Chinese stealth armor can be found on the office level of Hoover Dam. They are located in a storage room with some radioactive barrels, in a wooden crate to the left as the player enters the room. There are several wooden crates here, and all but the one containing the suits of armor is empty. Their existence is hinted at on the only accessible terminal on the same level, in an engineer's log entry noting that a suit made of "unknown material" was found after the NCR took the dam.
The following is based on Van Buren and has not been confirmed by canon sources.
Presumably, these are the suits worn by the Chinese Infiltrators who were sealed inside Sub-level 1C during the Hoover Sabotage. Being an older model than those deployed in Anchorage and mainland China, this variant doesn't include the advanced stealth systems of the later models.
Because both copies of the Chinese stealth armor are considered owned by the NCR, being caught pickpocketing while wearing one copy may cause the armor to be confiscated. This can occur regardless of whether or not the non-player character in question is aligned with the NCR.
With a small amount of spare caps, this effect can be negated by "fencing" the item: sell it to a merchant, then purchase it from the same merchant. The item will now be considered to be owned by the Courier. This can only be done if the merchant sells armor and is not in the NCR faction.
This armor can be seen in the trailer for Old World Blues. Additionally a disassembled suit can be found within the add-on, and disassembled parts of the armor can be seen in X-13 research facility; presumably having been reverse engineered to create the American Stealth suit Mk II.
When the Chinese stealth armor is equipped, your "Effects" panel on the Pip-Boy 3000 displays the armor name as "Initiate Armor". This happens because it uses exactly the same script with the recon armor.
xbox360pcps3 Because the armor is marked as owned by the NCR, a number of undesirable effects can occur if the armor is not "fenced", as described above: [verified]
Wearing the armor at the Brotherhood of Steel bunker may make all inhabitants hostile to you, due to both copies of the suit being owned by the NCR.
When entering the Camp McCarran interrogation room, Carrie Boyd may take the Chinese Stealth armor when confiscating your weapons. After leaving the interrogation room she will return the weapons, but not your armor.
xbox360pcps3 Though the armor covers the full face and head, hats, masks, and glasses can be worn with this armor equipped. This is most noticeable on companions: with this armor equipped, Boone will wear his beret and sunglasses, Veronica will wear her hood, Cass will wear her cowboy hat, and Arcade will wear his glasses. [verified]
Though it allows for additional face and head items to be worn, the Chinese stealth armor does not allow for unlimited headgear to be worn, as the Operation: Anchorage version did.
xbox360pcps3 If you drop the armor and drag it, the armor will do constant loops until you either drop it or it gets stopped by an object. [verified]