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While I consider myself to be as westernized as possible, I can see where your bf is coming from (considering his age).
His parents won't change - being the conversative traditionalists, that they are.
This sort of tension will never go away and may be reduced over time, it will be a bitter pill to swallow for them to accept the reality that he wishes to be with you.
It is obvious that your western-ized or even completely brought up in the US, was taught his parents traditional fundamentals.
The standard caucasian response is to provide the ultimatum and then walk away.
What I suggest is provide a way to lead up to it (make sure he knows you are uncomfortable, you seek a proper way to gain his family's acceptance). The impending Chinese New Year celebration is the perfect excuse to re-introduce yourself to the family.
This is not the time to be the bold, independent, strong, solid woman. Get him to be willing to confront his parents, he may wilt, but as long as he remains steadfast to be with you, it'll work out. A test of patience, if you wish to see it that way. He has to make a statement, which is easily done by simply having you around constantly when his parents are around.