Based on the theory of new structural economics,the impact of financial subsidies on enterprises' Total factor productivity was empirically studied by taking Shanghai and Shenzhen A-share non-financial listed companies from 2016 to 2021 as samples. The results are as follows.Moderate financial subsidies can encourage enterprises to improve Total factor productivity, while high-intensity financial subsidies can inhibit the improvement of enterprises' Total factor productivity, and there is an inverted U-shaped relationship between the two. Further research finds that the improvement of market competition intensity can not only deepen the inverted U-shaped relationship between financial subsidies and enterprises' Total factor productivity, but also delay the arrival of the inflection point of the inverted U-shaped relationship.