The article explores how research and development (R&D) activities in China's manufacturing industry can impact market structures. By analyzing data from 1996 to 2009, the researchers found that certain industries' technological advancements directly affect market competition and monopolies. The study used a Price-Cost Margin Model and stochastic frontier production function to measure changes in market structures and total factor productivity. The findings suggest that R&D behaviors can influence the competitiveness and monopoly levels of different industry sectors, which can help shape industrial policies and trade regulations in China's economic development.