diff --git a/HTMLTestRunner.py b/HTMLTestRunner.py
index 8d60600..c941d6d 100644
--- a/HTMLTestRunner.py
+++ b/HTMLTestRunner.py
@@ -774,13 +774,13 @@ def _generate_report_test(self, rows, cid, tid, n, t, o, e):
         if isinstance(o,str):
             # TODO: some problem with 'string_escape': it escape \n and mess up formating
             # uo = unicode(o.encode('string_escape'))
-            uo = o.decode('latin-1')
+            uo = o.decode('utf-8')
         else:
             uo = o
         if isinstance(e,str):
             # TODO: some problem with 'string_escape': it escape \n and mess up formating
             # ue = unicode(e.encode('string_escape'))
-            ue = e.decode('latin-1')
+            ue = e.decode('utf-8')
         else:
             ue = e
 
diff --git a/README b/README
index b1beea9..1307637 100644
--- a/README
+++ b/README
@@ -3,3 +3,6 @@ It generates easy to use HTML test reports. HTMLTestRunner is released under a
 BSD style license.
 
 Only a single file module HTMLTestRunner.py is needed to generate your report.
+
+Additions:
+Change encoding type latin-1 to utf-8, When display garbled characters that include Chinese characters in test report.