This study explores structural relations among learning environment, achievement goals and reading achievement in China. The sample contains 12,058 Chinese students from the Programme for International Student Assessment (PISA) 2018 study. Multilevel Structural Equation Modeling (Multilevel SEM) is used for data analysis. The results indicate that competitive learning environment positively predicts reading achievement. Student-centred learning environment positively predicts reading achievement both directly and indirectly. Teacher-directed learning environment negatively predicts reading achievement. Performance goals positively predict reading achievement. To improve student reading achievement in China, school leaders are recommended to create opportunities for teachers to learn how to cultivate student-centred learning environment. Reading teachers in China are recommended to adopt student-centred pedagogy rather than teacher-directed pedagogy in their teaching.