Global reactive nitrogen (N) has increased dramatically in coastal marine ecosystems over the past decades and caused numerous eco‐environmental problems. Coastal marine sediment plays a critical role in N losses via denitrification and anaerobic ammonium oxidation (anammox) and release of nitrous oxide (N2O). However, both the magnitude and contributions of denitrification, anammox, and N2O production in sediments still remain unclear, causing uncertainty in defining the N budget for coastal marine ecosystems. Here potential rates of N losses, and their contributions and controlling factors, were investigated in surface sediments during six cruises from 429 sites of the East China Sea. The potential rates of denitrification, anammox, and N2O production varied both spatially and seasonally, but the contribution of anammmox to total N2 production (%anammox) and N2O:N2 ratio only varied spatially. Both organic carbon and nitrate (NO3−) were important factors controlling N losses, N2O:N2 ratio, and %anammox. Our results also showed that marine organic carbon induced by eutrophication plays an important role in stimulating reactive N removal and increasing N2O production in warm seasons. The sediment N loss caused by denitrification, anammox, and N2O production in the study area were estimated at 2.2 × 106 t N yr−1, 4.6 × 105 t N yr−1, and 8 × 103 t N yr−1, respectively. Although sediments remove large quantities of reactive N, they act as an important source of N2O in this region influenced by NO3−‐laden rivers.