Despite the widely acknowledged pro-learning function of formative assessment and its wide adoption around the globe, the gaps between policy intention, interpretation and implementation remain a problem to be solved. While this problem is noted universally, it could be particularly serious in China, where Confucian Heritage Culture is deeply ingrained and education development is not quite balanced. This study, via interview data with English teachers and deans from eight universities in an undeveloped region of the Mid-western China, explores the overall environment for a formative assessment initiative that is currently in place. Data analysis reveals multiple issues, such as insufficient support, improper dissemination and ineffective training at the meso-level and the instructors' limited assessment ability, large class sizes and student's resistance at the micro-level. A conclusion is thus drawn that the overall environment in this region is by no means favourable for the effective implementation of formative assessment, and implications are derived for better realisation of assessment innovations in this and other undeveloped regions of China.