The current study examines how proper names and common nouns in Chinese are cognitively processed during sentence comprehension. EEG data was recorded when participants were presented with neutral contexts followed by either a proper name or a common noun. Proper names in Chinese often consist of characters that can function independently as words or be combined with other characters to form words, potentially benefiting from the semantic features carried by each character. Using cluster-based permutation tests, we found a larger N400 for common nouns when compared to proper names. Our results suggest that the semantics of characters do play a role in facilitating the processing of proper names. This is consistent with previous behavioral findings on noun processing in Chinese, indicating that common nouns require more cognitive resources to process than proper names. Moreover, our results suggest that proper names are processed differently between alphabetic languages and Chinese language.