Chinese children with reading disability, aged between seven and ten, were compared with a control group in the following tests: (1) a Chinese character recognition test comparing the frequency of visual-distractor errors with that of phonological-distractor errors; (2) the Frostig Developmental Test of Visual Perception; (3) the Auditory Association Test of the Illinois Test of Psycholinguistic Abilities; and (4) a digit span test. Dyslexic children made more visual-distractor errors in character recognition but not more phonological-distractor errors. There was significant difference in all of the five subtests of the Frostig Test between the two groups, but no significant difference in either of the two auditory tests. Results indicate the importance of visual processing in the reading of Chinese, and some possible orthography difference between Chinese and English is discussed.