Incorrect:
Why are Chinese names this way? First of all, Chinese put their family names first. (Get it, family first...) The middle name is the generation name. What's the generation name? Traditionally, each Chinese family has a poem associated with it. As each new generation is born, it takes the next word of the poem as the generation name. This way, during family gatherings, you can tell just by their names who's your uncle, cousin, etc. Theoretically, all members of the family in a generation have the same generation name. Finally comes the individual name, which is something the parents choose. It's kinda like internet addresses (login, machine-name, domain) in a way.