This paper presents new evidence that explores the strengths, weaknesses and overall quality of school inspection practice in China. In one city region of Shandong Province, the research examines stakeholder perceptions of inspection purposes, processes and outcomes, as well as the potential to improve inspection practice and compulsory education quality in China. A mixed-methods empirical design was employed to conduct the research involving ten purposively selected junior high schools. Data collection methods included a survey of 364 teachers and headteachers and 13 stakeholder interviews with headteachers, teachers, as well as city and national inspectors, and an educational officer. The survey data were analysed through descriptive analysis and a repeat-measures one-way ANOVA, and the interview data were analysed thematically. The findings supply new empirical evidence regarding the context specificity of school inspection in China and identify pertinent issues regarding school inspection quality. This study overall argues that school inspection criteria and methods in Shandong province and more broadly in China could be improved by taking better account of stakeholder views and school contexts and by putting more stress on providing school-based professional improvement guidance integrated within or alongside inspection processes, instead of just intense bureaucratic monitoring of inspection outcomes.