Abstract:In this paper, the improved C-H model is used to study the influence of the absorption capacity of trade technology spillovers on the transformation and upgrading of China"s manufacturing sector. The empirical results show that the R D capital stock has a significant effect on the improvement of the TFP of the domestic manufacturing industry. Human capital, openness, R D investment, financial development, infrastructure, economic development level, reform willingness and institutional ,all the factors play a crucial role in absorbing technology through trade channel in the technology-intensive sector. At the same time, China"s technology-intensive sectors obtain technology through the trade channels ,which has an "threshold effect." The impact that the cross term of the level of economic development and trade on the TFP of labor-intensive manufacturing in China is significantly negative, which indicates that China"s labor-intensive manufacturing industry has a technical bottleneck. The cross term of reform willingness and trade, the cross term between institutional factors and trade,both of them have no significant effect on the TFP of labor-intensive manufacturing in China. Therefore, under the new normal background, changing China"s trade structure and improving the proportion of technology-intensive manufacturing in China"s foreign trade will be conducive to the transformation and upgrading of China"s manufacturing industry.