Abstract:DEA-Malmquist index is adopted to calculate the total factor productivity (TFP), which is further decomposed into technical efficiency change (EC) and technological progress change (TC). Selecting panel data of 11 Chinese industries OFDI in 14 representative countries from 2004 to 2015, this paper tests how the four absorptive capacity indicators, namely the trade dependence, human capital, R&D input and income level, affect the reverse technology spillovers by using the international R&D spillovers regression model. The results indicate that the absorptive capacity of all industries promotes the reverse technology spillover of China’s OFDI to a certain extent. Furthermore, with TFP as the dependent variable, the Hansen threshold model is used to study the effect of absorptive capacity on Reverse Technology Spillover. It is found that the result is more significant when the absorptive capacity indicator exceeds the threshold level, and some of the industries are still below that threshold.