This paper analyzes the dynamic evolution and regional disparity of Chinese higher education productivity in 29 provinces by adopting SBM directional distance function and Malmquist productivity index. The data set has been utilized for the period of 2007-2015 according to data availability. Later, the source of educational growth is explored though index decomposition. Results reveal that: Chinese higher education productivity is on the rise and its growth rate varies during different periods. The higher education productivity during the “Eleventh Five-year Plan” has increased, with an average annual growth rate of 5%. The growth rate of higher education productivity during “The twelfth Five-year Plan” was significantly slower as compared to “The Eleventh Five-year Plan” with an average annual growth rate of 1%. Moreover, Chinese higher education has an average annual growth rate of 2% in the total factor productivity. Technological progress and technical efficiency have an average annual rate of 1%, which indicates that higher education productivity growth is the result of both technological progress and technical efficiency. Taking the regional difference in consideration, the development of Chinese higher education productivity seems unbalanced. There were significant interurban differences and spatial differences in higher education productivity. The higher education productivity growth rate of eastern region was faster as compared to northeast, central and western areas. The annual average productivity index of nine regions has improved, among which higher education productivity growth rate of Zhejiang province is the largest. However, annual average productivity index of 17 regions is observed declining, and the biggest drop is in Inner Mongolia region.