Using forest for carbon sequestration is widely accepted as an important strategy to mitigate climate change. Using data collected from rural households' survey in Zhejiang and Jiangxi, Faustmann model was applied to investigate the optimal rotation age and forestland expectation value between traditional timber management and joint timber and carbon management for Chinese fir. Carbon supply curve was developed and sensitivity analysis was conducted with various interest rate and carbon price. It was found that the optimal rotation of Chinese fir in the joint management does not change from traditional timber management due to the fact that timber price is much higher than carbon price, suggesting that optimal decision for Chinese fir management will not change significantly and carbon sequestration supply from current Chinese fir forestland would not increase significantly within a large range change of carbon price. However, including carbon value would significantly increase the land value for forest management against alternative land uses, and will expand the forest area, which also increase the carbon storage in the expanded forestland.