This was interesting but a lot of the things are wrong. Mandarin does have words. They are just composed of characters instead of letters. And there is NO way you could read a Chinese newspaper by just knowing what the characters “mean”. Some characters don’t mean anything, and they’re just there for grammatical reasons. Other characters can get mixed with completely unrelated characters and get a totally unrelated m…
I imagine that someone could choose to make deliberate progress on this skill, even though it's not at all a common approach to teaching or learning Chinese. I can report that I know that San Francisco is called 旧金山, and that I know the meaning of each of the three characters as well as their meaning together, but I don't know the sound of any of them. If I heard someone refer to San Francisco in spoken Chinese, I would have no idea what was being referred to, but if I saw it written, I would!
I've also seen Chinese speakers who don't know any Japanese understand the basic meaning of signs in Japanese, and vice versa, because often individual hanzi and kanji continue to share their most basic or common meanings (though by no means always). I realize this is also a far cry from being able to read a newspaper fluently, but I find it very suggestive, since most likely the speakers in question wouldn't be able to read these signs aloud!
Edit: but in support of your intuition about this, Wiktionary, for example, lists 256 Chinese words that use (for example) 市, a huge number of which probably don't have a transparent meaning to a non-Chinese speaker who knows all the individual characters in a given word. And it's a similar situation with other characters, so at least it would require a lot of deliberate study to understand complex texts.