ABSTRACT Previous research in the alphabetic writing system has demonstrated that transposition distance (adjacent vs. non-adjacent) modulates word position encoding during sentence reading. To examine the generality of this pattern within a more holistic model of sentence processing, we investigated this effect in the logographic Chinese writing system. We manipulated the number of words intervening between the transposed words, creating four conditions: none, one, two, and three intervening words. Participants performed a rapid grammaticality judgment task. Results showed longer response latencies and higher error rates when words were transposed adjacent to each other compared to non-adjacent transpositions. Furthermore, more errors and longer response times were observed when one word intervened between the transposed words compared to two or three intervening words. However, no significant differences emerged between the two- and three-word interval conditions. These findings suggest that word position encoding exhibits graded, flexible tolerance to transposition distance, constrained by proximity.