Abstract Effective policy measures are required to control environmental problems caused by nitrogen (N) fertilizer use in intensive crop production systems in China. However, simply reducing the use of N fertilizer in all regions may be detrimental to food security. Here we reviewed N management policies and indicators, with a particular focus on European Union (EU), and designed an N index system for cereal crops in China. We suggest to use N surplus as an (environmental) evaluation index and N input as a guide to meet the dual challenge of food security and environmental sustainability, and propose crop and region-specific standards for these indexes. We inferred a mean critical N surplus of 75 kg N ha⁻¹ for maize, 40 kg N ha⁻¹ for wheat and 70 kg N ha⁻¹ for rice. For N input, Maximum N (Max. N) and Minimum N (Min. N) input indices are proposed, to guide farming practices effectively. Max. N was based on the N demand of crops achieving their potential yield, in different regions, Min. N was based on the N demand of crops at their target yield, while associated N surpluses do not exceed the set critical values. To meet the dual challenge of food security and environmental sustainability, China needs to increase maize and wheat yields by 20%–40% (rice has achieved target yield) while reducing N input by 10%–20%. This requires an enormous increase in N use efficiency. The N management indexes proposed here can be used as benchmarks to monitor the progress at regional level. Max. N and Min. N may have to be updated regularly when potential and target yields, and thereby crop N demand, change. Also, critical N surpluses may have to change when insights in the impacts of these N surpluses change.