Asset Management is a systematic and strategic approach to managing, maintaining,and operating transportation infrastructure in a more cost-effective manner. It combines engineering principles with sound business practices and economic theory. Asset Management could provide a solid foundation for monitoring the operation and maintenance of transportation systems and optimizing the preservation, upgrading, and timely replacement of infrastructure. It promotes more effective resource allocation and utilization based upon quality information to address facility preservation, operation, and improvement.Transportation infrastructure such as highways, bridges, and tunnels provide critical lifelines for commuting, commerce and pleasure travel, support of economic development, and national defense, and in case of emergency, the disaster response needs. The costs to build, operate, preserve, and improve these infrastructure are critical to meeting national goals of economic growth, social welfare, safety and security, environmental protection, and emergency preparedness. Intelligent Transportation Systems, or ITS, encompasses a broad range of wireless and wireline communications-based information, control and electronics technologies.When integrated into the transportation system infrastructure, and in vehicles themselves, these technologies help monitor and manage traffic flow, reduce congestion, provide alternate routes to travelers, enhance productivity, and saves time and money. Examples of Intelligent Transportation Systems include: Advanced Traffic Management Systems (ATMS), Advanced Traveler Information Systems (ATIS), and Incident Management Systems (MS),etc.The challenge of making the prudent use of limited resources to manage a wide range of ITS assets in a way to meet the demands for more effective and efficient transportation systems and to satisfy the transportation goals and needs of transportation users and customers is by applying the principles and practices of what is referred to as asset management, a strategy for the 21* Century.This presentation will discuss issues about the asset management principles, concepts,components, techniques, processes and strategies, and benefits that can enhance our ability to better manage Chinas ITS assets more smartly, effectively, and tactically with limited resource allocation and utilization.