<p>Heritage is essentially a value-based discursive process shaped by competing narratives, which often leads to heritage exclusivism—particularly in colonial heritage marked by value conflicts and attempts at integration. In the context of the Chinese narrative informed by national rejuvenation and cultural confidence, a dominant and homogeneous political discourse plays a significant role in the identification and conservation of heritage. In practice, therefore, what could be a heritage mainly depends on the embodiment and expression of national narratives, which can be transferred and reflected in the planning actions commonly associated with urban regeneration at the city level. However, heritage views and expressions are often ignored, which may lead to heritage exclusivism. This paper takes industrial heritage with the colonial past in Qingdao as an example to explore how colonial heritage is reproduced and disseminated, what memories and values are included or excluded in the process of urban regeneration, and how it can be expressed in various ways. On the basis of the discourse analysis of local planning-making and practices in the context of Qingdao’s urban regeneration, this paper emphasises the selectivity of colonial industrial heritage and its implications and consequences under the practice of a national narrative. Simultaneously, interviews were conducted to probe the values and perspectives of various stakeholders to explore the local interpretations of ‘what is colonial industrial heritage?’. Finally, this study identifies the gap between diverse values and argues that a place-based and community-oriented approach is needed that can draw on diverse local value expressions in contemporary urban regeneration practices.</p>