The present study examined the developmental issue of cognitive factors that explain Chinese literacy. Phonological awareness, rapid automatized naming, short-term memory, orthographic awareness and morphological awareness and two literacy tasks (character naming and reading fluency) were administered to 408 second-graders, 428 fourth-graders and 496 six-graders. Results from linear regression analysis and path analysis model showed that the five reading-related cognitive constructs explained unique variances in character naming. Second, character naming is primary for reading fluency after controlling other cognitive constructs; third, the relation between the cognitive factors and literacy changes significantly as a function of reading skills. Results give a clear direction to understanding Chinese reading development.