Reading difficulty (RD) is associated with phonological deficits; however, it remains unknown whether the phonological deficits are different in children and adults with RD as reflected in foreign speech perception and production. In the current study, using functional Near-infrared spectroscopy (fNIRS), we found less difference between Chinese adults and Chinese children in the RD groups than the control groups in the activation of the right inferior frontal gyrus (IFG) and the dorsolateral prefrontal cortex (DLPFC) during Spanish speech perception, suggesting slowed development in these regions associated with RD. Furthermore, using multivariate pattern analysis (MVPA), we found that activation patterns in the left middle temporal gyrus (MTG), premotor, supplementary motor area (SMA), and IFG could serve as reliable markers of RD. We provide both behavioral and neurological evidence for impaired speech perception and production in RD readers which can serve as markers of RD.