Abstract:    Grasping the opportunity of digital transformation development of Chinese enterprises and fully releasing the huge multiplier effect of digital technology and data resources in improving total factor productivity have become the only way for Chinese enterprises to achieve high-quality development under the new normal. This paper constructed indicators for enterprise digital transformation based on the semantic system of national authoritative policies, decomposed the total factor productivity of listed companies in China into "enhancement effect" and "suppression effect", and used a dynamic panel regression model to examine in detail the channel mechanism, fluctuation characteristics, and nonlinear relationship of digital transformation affecting enterprise total factor productivity.The study found that although there is a clear inverted U-shaped relationship between digital transformation and total factor productivity, the current stage is still in the "dividend release period" that can effectively promote the improvement of total factor productivity; digital transformation has a significant "stabilizing effect" on the change in total factor productivity of enterprises, breaking the high-speed growth path of total factor productivity and making its growth rate unsustainable; and digital transformation has promoted the improvement of total factor productivity of enterprises by expanding economies of scale and scope, as well as optimizing management efficiency.This paper has revealed the reasons for the gradual slowdown or even stagnation in the growth rate of total factor productivity in Chinese enterprises in recent years. By analyzing the impact path and mechanism of digital transformation on total factor productivity, it has provided certain academic value and policy implications for enterprises to improve quality and efficiency and move towards the mid-to-high end value chain.

Key words: digital transformation, enterprise total factor productivity, enhancement effect, suppression effect