This research investigates into the notion construction of heritage in urban regeneration process in China. It aims to understand how and why is heritage produced in specific ways, as a step contributing to understanding distance between heritage policy and implementation. It adopts a qualitative approach of case study, collecting both primary data from interviews as well as non-participant observation and secondary data from official documents and online articles. The research conceptualises heritage as a process, exploring value construction and delicate power relations within. It unveils multiplicity of heritage in both value interpretation and product-making. The intrinsic dissonance among multiple interpretations and imbalanced power relations weave into the process where heritage material is purposefully selected and packaged into specific heritage products. Current trends in regeneration also greatly influence governance of heritage management. This research implies the complexity of heritage and its relation to political-economic context. It calls for further studies to analyse heritage governance in China with more comprehensive scope.