China has abundant heritage sites, and the number of its World Heritage Sites take the third place in the world. World heritage sites are playing and will continue to play an important role in the economic growth and the maintenance of critical life-support systems all over the world. The role of economic development is realized mainly through tourism and the related service industries, such as hotels, restaurants, etc; and this is especially true in China. It seems, however, that there is a dilemma between the economic development and heritage conservation. On one hand, economic development has caused great impacts on heritage sites; on the other hand, however, economics is compatible with or even complementary to heritage conservation. In today’s modern society, economics and business play a very important role in our everyday lives, and economic and business thinking are influencing our actions more and more. Increasingly economic considerations take precedence over cultural, social, political, and aesthetic values; and economic and business thinking begin strongly influencing our decisions about what and how to conserve world heritage Sites. The hypothesis of the thesis is that economics and its principles could offer a series of pragmatic tools for human beings to define heritage phenomena, and to expose, analyze, and solve the problems during world heritage conservation. Based on these ideas, this thesis aims at studying how the economic theories and principles can be applied to expose, analyze and solve the problems existing in World Heritage Sites. It begins with an introduction to China’s World Heritage Sites, and then it continues to illustrate the relationship between world heritage sites and economics. The third chapter deals with how to use economic theories to expose and analyze the problems existing in China’s world heritage sites, and the following chapter illustrates some economic models for managing of world heritage sites. The paper ends with a specific case study, which demonstrates an example of economic valuation model for managing heritage sites.