Abstract: Taking the state-owned forest region in Yichun as an example, this paper sorts out the historical process of "division-combination-division" of the management system changes and points out two critical junctures using the analytical method of historical institutionalism to explore the logic behind institution changes. The mechanism behind this institutional reciprocating was multi-level and multi-agent. Its essence was to readjust the institutional framework that no longer meets the requirements of productivity development under the new era. Institutional change originated from the transformation of macro social structure and economic structure, and there were different paths and characteristics behind the two management system transformations in Yichun: in the first critical juncture, the path dependence effect was weak, while pressure from the grass-rootsactors’ reform willingness was strong, which led to the emergence of induced institutional changes; in the second critical juncture, the path dependence was so strong that it had to rely on the strong intervention of state actors, which led to the development of mandatory institutional change. Finally, based on the historical, structural, and dynamic view of institution changes, this article suggests that we should correctly understand the essence, dynamically understand the process, and fully form the thinking of actors so as to deepen the reform, help rejuvenate Northeast China and eventually achieve the goal of common prosperity.