Previous research in alphabetic languages has shown that both position (external, internal) and distance (adjacent, nonadjacent) modulate letter position encoding during reading. To examine the generality of this pattern for a comprehensive model of word recognition and reading, we examined these effects during Chinese reading (i.e., an unspaced logographic language). Participants in two experiments read intact sentences and sentences containing transposed-character nonwords while their eye movements were monitored. Experiment 1 manipulated the distance between the transposed characters (adjacent vs. nonadjacent) within three-character words. Reading times were longer when nonadjacent characters were transposed compared with adjacent characters. Also, for adjacent character transpositions, a word-beginning character transposition led to longer reading times than a word-ending character transposition. Experiment 2 manipulated orthogonally character transposition distance (adjacent vs. nonadjacent) and position within four-character words, including the beginning versus the last character. Reading times were longer when the transposition involves the first character than when involves the ending character. Fixation durations on the target regions in the nonadjacent character transposition condition were longer than those in the adjacent character transposition condition. Taken together, these results reveal robust effects of both the initial character position and transposed-character distance in Chinese reading. Thus, the privileged status of the initial character is intrinsically related to how we access lexical information. (PsycInfo Database Record (c) 2023 APA, all rights reserved).