FULL PRODUCT VERSION :
java version "1.8.0_102"
Java(TM) SE Runtime Environment (build 1.8.0_102-b14)
Java HotSpot(TM) 64-Bit Server VM (build 25.102-b14, mixed mode)

ADDITIONAL OS VERSION INFORMATION :
Ubuntu 14.04
Linux XXX 3.2.0-23-generic #36-Ubuntu SMP Tue Apr 10 20:39:51 UTC 2012 x86_64 x86_64 x86_64 GNU/Linux

Did NOT see this problem on windows (Windows 7/6.1.7601)

A DESCRIPTION OF THE PROBLEM :
Error occurred during initialization of VM
java.lang.UnsupportedOperationException
at sun.nio.cs.ext.ISO2022_CN.newEncoder(ISO2022_CN.java:76)
at sun.nio.cs.StreamEncoder.<init>(StreamEncoder.java:176)
at sun.nio.cs.StreamEncoder.forOutputStreamWriter(StreamEncoder.java:59)
at java.io.OutputStreamWriter.<init>(OutputStreamWriter.java:111)
at java.io.PrintStream.<init>(PrintStream.java:104)
at java.io.PrintStream.<init>(PrintStream.java:151)
at java.lang.System.newPrintStream(System.java:1148)
at java.lang.System.initializeSystemClass(System.java:1192)

STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
javac Test.java (simple hello world app) (see source code below
java -Dfile.encoding=iso-2022-cn Test

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
JVM initializes and runs,
prints a blank line
ACTUAL -
Error occurred during initialization of VM
java.lang.UnsupportedOperationException
at sun.nio.cs.ext.ISO2022_CN.newEncoder(ISO2022_CN.java:76)
at sun.nio.cs.StreamEncoder.<init>(StreamEncoder.java:176)
at sun.nio.cs.StreamEncoder.forOutputStreamWriter(StreamEncoder.java:59)
at java.io.OutputStreamWriter.<init>(OutputStreamWriter.java:111)
at java.io.PrintStream.<init>(PrintStream.java:104)
at java.io.PrintStream.<init>(PrintStream.java:151)
at java.lang.System.newPrintStream(System.java:1148)
at java.lang.System.initializeSystemClass(System.java:1192)

ERROR MESSAGES/STACK TRACES THAT OCCUR :
java.lang.UnsupportedOperationException
at sun.nio.cs.ext.ISO2022_CN.newEncoder(ISO2022_CN.java:76)
at sun.nio.cs.StreamEncoder.<init>(StreamEncoder.java:176)
at sun.nio.cs.StreamEncoder.forOutputStreamWriter(StreamEncoder.java:59)
at java.io.OutputStreamWriter.<init>(OutputStreamWriter.java:111)
at java.io.PrintStream.<init>(PrintStream.java:104)
at java.io.PrintStream.<init>(PrintStream.java:151)
at java.lang.System.newPrintStream(System.java:1148)
at java.lang.System.initializeSystemClass(System.java:1192)

REPRODUCIBILITY :
This bug can be reproduced always.

---------- BEGIN SOURCE ----------
class Test
{
    public static void main(String args[])
    {
        System.out.println("");
    }
}

The critical part of the repro is to use "-Dfile.encoding=iso-2022-cn" when launching.
This problem doesn't occur with iso-2022-jp


---------- END SOURCE ----------

CUSTOMER SUBMITTED WORKAROUND :
No workaround.
Do not use files that would be dependent on -Dfile.encoding=iso-2022-cn