Air China is fine if you don't expect anything the likes of Emirates or SQ..
The only thing I really HATE about Chinese airlines (all of them) is their silly "no phone during ALL TIME in flight.. " so forget about listening to a podcast on your mobile phone.. surprisingly enough, a full sized tablet is fine for them.. total silly and makes absolutely no sense, but "it's a rule".
That said, their newer aircraft sponsor "state-of-the-art" Economy class seats, a useable IFE, and I personally don't think their food is worse than that of the likes of Lufthansa, BA, etc. - it's classic Economy food.
Their new 777 is pretty good in fact, if you're flying such a route, definitely prefer them over BA in Y.
Unless you really like your beer ice cold. Because they usually fail on that
Apart from not-so-cold beer and the silly no-phone rule, they're a carrier I don't have anything bad to say about.
Regarding luggage, the only time I didn't receive my luggage in PEK was because another pax took my luggage from the belt (Priority label, and it was out REALLY fast) - couldn't blame him much for it, though, it was exactly the same, we even had an almost same sticker on it, same slightly damaged area, the differences were very suble (apart from the ID TAG, obviously) - and it was corrected with the help of a baggage handler which took the case very professionally (Figured out his phone number, called him several times till she got a hold, organized exchange point most convenient for both of us as I had now his luggage etc.) so couldn't really say it was chaotic despite obviously some people being in the "Lost&Found" like at any day at any airport. Also, no language barrier there either. They're not great in English for a highly sophisticated conversion, but it gets the job done (as with the FAs in most cases)