Under current Chinese Government reforms, Chinese State-Owned Enterprises (SOEs) will be under closer scrutiny on asset management, capital investment efficiency and competitiveness. The use of post-project appraisals to understand project performance and root causes of outcomes is not new to Chinese SOEs; however, effectively harnessing the benefits of post-project appraisals has been challenging for these enterprises. The objective of this paper is to discuss the obstacles Chinese SOEs face, which stem mainly from organisational and cultural factors. Most of the challenges identified can be addressed if there is a strong commitment from the senior executive team to use project appraisals as a basis for continued improvement.