This paper examines the co-evolution of value-creating activities of Chinese MNEs and home institution by Institution Theory and co-evolution view. The value-creating activities include R&D capability、firm productivity、human resource quality、variety in production and degree of internationalization. Our data comes from database of Shanghai-Shenzhen Stock Exchange 1999 and 2010. The result is that the firm productivity and human resource quality of Chinese MNEs have positive effect on the degree of home province modernization. On the other hand, the degree of home province modernization also has positive effect on the productivity of Chinese MNEs. Moreover, we proved that there is a significant co-evolution relationship between each other.