Your boss is The Boss so basically you could do what he asks, and also send an (anonymous) report to the BSA, the police and some other copyright-guard dogs, explain your situation and let them handle it.
When your local boss and your colleagues agree with you, you should have plenty of support to not follow this command from your Big, Chinese Boss. Tell your local boss to contact your Chinese Boss and let him handle this matter, explaining why you can't use any illegal software. Just make sure your local boss understands why you refuse to use some illegal software. If your local boss supports the Chinese Boss, you can reach the BSA at this URL.
On another note, if your Boss is unwilling to pay for commercial software, then just use free software, as many have already suggested here. Even if that takes you a lot more time to do the design, that would not be your problem! It's a problem your Boss could have prevented by buying better software. I've had to deal with inadequate software in the past many times already. I always made it clear I won't use any illegal software and just warn my Boss that it would take me a lot more time if I don't have the proper tools to do my work. Then it's his decision to decide what to do. And yes, this occasionally meant that I had to do things the slow way...
I am a bit worried about your SO profile, though. It's enough to identify you, but fortunately a quick scan didn't tell me who your employer is. Yet... You will need to be careful about that, online. I know you have nothing to hide but you've just said you've been ordered to do something illegal. People will be curious and will want to find out the company that you've hinted that is acting in an illegal way. Why? Because reporting such offenders can sometimes provide a small bonus for those who report them!
I don't expect you'd be in trouble, though. Just want to warn you that you're tipping off other people online. :-)