Chinese characters are analyzed based on a very recent theory of grammar of Chinese characters proposed by Myers (2019) for the decoding of Chinese characters as the first step of comprehension of reading Chinese. The structure of spoken Chinese is also interpreted for the second step of reading Chinese, focusing on the segmentation of Chinese compound words with different structures, and different types of garden path in processing Chinese complex sentences. Thereby, an innovative theory of reading Chinese is proposed with implications for the acquisition of written Chinese by the Deaf in Taiwan, as well as by the learners of Chinese as a second language.