Abstract: Based on the existing literature, this paper sorts out the relevant research progress of manufacturing transformation and upgrading measurement methods and measurement indicators, and builds a comprehensive evaluation index system for manufacturing transformation and upgrading from four aspects: quality and efficiency, innovation capability, information technology and green development. Then the paper determines the index weight based on the entropy weight method, and uses the panel data of 29 provinces and municipalities in 2007-2016 to measure the development level of China’s manufacturing transformation and upgrading. It also analyzes the changing trend of manufacturing transformation and upgrading and the heterogeneity of each province and city. The results show that the main factors affecting the transformation and upgrading of manufacturing industry are innovation ability, quality efficiency, green development and information technology. This shows that in the process of transformation and upgrading of China’s manufacturing industry, the most important thing is to rely on the innovation ability of manufacturing industry； From 2007 to 2016, the level of China’s manufacturing transformation and upgrading has shown a steady upward trend, laying a good foundation for the subsequent transformation and upgrading of the manufacturing industry； There are significant differences in the level of manufacturing upgrading in various provinces and municipalities in China. In general, the index of development and upgrading of manufacturing in the eastern region is higher than that in the central and western regions.