This study aims to examine how real-time processing of information about the social status of interlocutors (high vs. low) and the imposition of making a refusal by manipulating the indirectness of invitation forms (declining direct invitations vs. declining indirect invitations) affects the interpretation of refusals in Chinese. The event-related potentials results showed that high-status invitees who decline invitations from low-status inviters elicited weaker N400 effects followed by late mitigated negative effects, while high imposition refusals elicited stronger N400 effects followed by increased late negativities. The two factors of social status and imposition functioned independently during the comprehension of refusal utterances. These findings suggest that individuals take the social status of interlocutors and the imposition of making a refusal into consideration as an utterance unfolds, while face-threatening contexts create inferential difficulties for reinterpreting the pragmatic implications of an utterance.