Using Chinese input-output table, this paper calculated the domestic technological content (DTC) and the share of vertical speciation (VSS) of manufacturing industry as well as 16 industrial sectors from 1992 to 2012. The results show that : the DTC of manufacturing industry and 16 industrial sectors increased gradually with time, the VSS of manufacturing industry and 16 industrial sectors increased gradually which indicates that Chinese participation of vertical specialization is getting deeper. Using the system GMM method, we further empirically study the influencing factors of DTC. The results show that: (1) indigenous R&D、foreign technology import、FDI as well as import trade has positive promotion to DTC, and the effect of indigenous R&D is greater than the other three factors. (2) over-embedded in vertical specialization can cause "low-end locked" effect which is bad for the promotion of DHT. (3) human resource plays a very important role in technical progress, which has obvious positive promotion on DHT.