China has achieved continuous increase in both forest area and stock volume, but is challenged by the problems like single species in plantation, higher proportion of young forest stands, smaller diameter class, and low unit stock volume per hectare. How to give play to the role of forests in providing multiple functions such as timber production, biodiversity conservation, carbon sequestration, water and soil conservation and social and cultural services in the context of climate change and global economic integration is a big issue to be resolved for modern forest development. This paper analyzed the effects of tree species selection and allocation as well as the various forest management regimes on the functions and services of forest ecosystem, and concluded the methods and tools that could be used to model their effects through literature review in systematic way. Based on the analyses, the paper presented the overall trend in the research and practices in this terms, which will provide references for the decision-making in relation to tree species selection and allocation in China for enhancing the forest ecosystem services and functions.