Tasks of word reading in Chinese and English; nonverbal IQ; speeded naming; and units of syllable onset (a phoneme measure), syllable, and tone detection awareness were administered to 211 Hong Kong Chinese children ages 4 and 5. In separate regression equations, syllable awareness was equally associated with Chinese and English word recognition. In contrast, syllable onset awareness was uniquely associated with English reading only, whereas tone detection was uniquely associated with Chinese reading only. Results underscore both the universality of first-language phonological transfer to second-language reading and the importance of different psycholinguistic units (Ziegler & Goswami, 2005) for understanding reading acquisition: Tone units are integral to Chinese character recognition, whereas phonemes are more strongly associated with English word recognition, even within the same children. (Contains 4 tables.)