The issue of how phonological information becomes available in reading Chinese and the role that it plays in lexical access was investigated for Chinese compound words, using pseudohomophone effects in lexical and phonological decision as a diagnostic tool. Pseudohomophones were created by replacing one or both constituents of two-character compound words with orthographically dissimilar homophonic characters. Experiment 1 found that mixed pseudohomophones sharing one constituent with their base words were more difficult to reject than control nonwords in lexical decision. Pure pseudohomophones sharing no constituents with their base words did not show this effect. Experiment 2 used mixed pseudohomophones and found an interaction between base word frequency and the frequency of constituent characters in determining pseudohomophone effects. Experiment 3 used a phonological decision task and found exceptionally poor performance for pure pseudohomophones. These results are interpreted in an interactive framework where the direct mapping from orthography to semantics is dominant and phonology plays a subsidiary role.