Abstract: Under the background of digitization, combined with knowledge management theory and core-technology competence theory, this paper constructs a theoretical model of the impact of enterprise internal knowledge on core-technology competence and the boundary conditions at the internal, external and institutional levels. Taking 129 intelligent manufacturing listed companies in China from 2010 to 2019 as samples, this paper constructs a multiple regression model. The study found that there was a positive "U" relationship between enterprise internal knowledge and core-technology competence, and further analyzed the moderation effects of digital transformation degree, absorptive capacity and government subsidies on the "U" relationship. The degree of digital transformation played a positive moderation role, absorptive capacity played a negative moderation role, and the role of government subsidies failed to obtain stable results. This study makes an empirical analysis on the relationship between enterprise knowledge management and core technology, discusses the practical conditions for Chinese enterprises to improve their core-technology competence based on the reality of digitization and Sino US trade friction, and finally puts forward relevant management and policy suggestions. The research has certain theoretical value and practical significance.