Environmental monitoring data are essential to informing decision-making processes relevant to the management of the environment. Their accuracy is therefore of extreme importance. The credibility of Chinese environmental data has been long questioned by domestic and foreign observers. This paper explores the potential impact of institutional, political, and ideological factors on the accuracy of China’s environmental monitoring data. It contends that the bureaucratic incentive system, conflicting agency goals, particular interests, and ideological structures constitute potential sources of bias in processes of environmental monitoring in China. The current leadership has acknowledged the issue, implementing new measures to strengthen administrative coordination and reinforce the oversight of the central government over local authorities. However, the failure to address the deeper political roots of the problem and the ambivalence over the desirability of public participation to enhance transparency might jeopardize Beijing’s strive for environmental data accuracy.