Background Research has shown that achievement goals and reading instruction play important roles in students' reading performance. However, little is known about the specific effects of different types of achievement goals and reading instructional practices on reading performance in mainland China. Methods This study used Programme of International Student Assessment (PISA) 2018 data to examine the effects of Chinese students' achievement goals and perceived reading instruction on reading performance. Four districts in mainland China, Beijing, Shanghai, Jiangsu, and Zhejiang (B–S–J–Z), participated in PISA 2018. A profile of B–S–J–Z students' achievement goals and perceived reading instruction compared with those in other East Asian societies is presented. The relative contributions of different achievement goals, instructional practices at the student and school levels, and their interactive effects on reading performance are then examined by using hierarchical linear modelling. Results The results show that performance and avoidance goals are important for B–S–J–Z students' reading performance when classroom and school teaching environments are considered. The disciplinary climate, adaptative instruction and teachers' stimulation are positively related to reading performance at both the student and school levels. Some cross‐level interactions between personal achievement goals and school reading instruction are found. Conclusions The findings suggest that achievement goals and reading instructional practices at both the student and school levels contribute to Chinese students' reading performance. The relationships between school reading instruction practices and students' reading performance vary for different achievement goals.