Aim: Most studies on nursing home quality focus on developed countries, with little coverage in developing countries. Our study aimed to compare the differences between Chinese public and private non‐profit nursing homes using the latest national standard. Methods: A cross‐sectional study was conducted including 232 nursing homes in Jiangsu and Zhejiang provinces, China. We conducted statistical analyses (chi‐square and independent sample t test) to investigate differences in public and private non‐profit nursing homes. We fitted a binary logistic regression model with whether or not the nursing home received a 3‐star or higher rating as the dependent variable, and the ownership type as explanatory variable, after adjusting for nursing home characteristics. Results: Of the 232 nursing homes included in the study sample, 44.8% were public nursing homes and 55.2% were private non‐profit nursing homes. The t test analysis comparing the measures of nursing homes yielded significant results for 4 measures, 3 of which (overall rating, environment, and services) favored private non‐profit nursing homes. A regression analysis using whether or not the nursing home received a 3‐star or higher rating as the dependent variable showed that when adjusting for nursing home characteristics, private non‐profit nursing homes were more likely to have a 3 or higher star compared with public nursing homes (odds ratio = 1.961, 95% confidence interval: 1.056–3.643). Conclusion: These results suggested that private non‐profit nursing homes performed better than public nursing homes when using the Chinese national standard for nursing homes. [ABSTRACT FROM AUTHOR]