Developmental dyslexia (DD) is a common reading disorder with neurological underpinnings; however, it remains unclear whether Chinese children with DD exhibit spectral power or network topology abnormalities. This study investigated spectral power and brain network topology abnormalities using electroencephalography (EEG) during resting states and a one-back Chinese-Korean character task in 85 Hong Kong Chinese children with DD and 51 typically developing peers (ages 7-11). EEG signals were transformed using the Fast Fourier Transform to estimate spectral power. Functional connectivity matrices were derived using the phase-lag index, and network topology was assessed via minimum spanning tree (MST) analysis. The results suggested that children with DD showed reduced alpha power over central, frontal, temporal, parietal, and occipital scalp areas at rest, and over central and frontal areas during the task. MST results revealed decreased beta band integration at rest but increased alpha band integration during the one-back task. Familiar Chinese stimuli elicited greater alpha and beta power and lower beta band integration compared to unfamiliar Korean stimuli. Moreover, resting-state beta band integration correlated positively with reading fluency in children with DD. These findings point to inhibitory control deficits and cortical hyperactivation in Chinese DD, reflected in disrupted large-scale network topology, and highlight the alpha band as a potential biomarker. They also demonstrate that language familiarity modulates neural efficiency and recruits compensatory networks. Overall, the study provides new insights into the neural basis of reading difficulties in Chinese children with DD.