The relative sophistication of Chinese exports

China's exports have grown dramatically over the last three decades in large part due to its rapid penetration of new product markets. To help address the implications of this growth for developed economies, this paper gauges the relative sophistication of Chinese exports along two dimensions. First, I measure China's export overlap with developed countries by comparing the set of products China exports to the United States with the bundle of products exported by the OECD. Second, I compare Chinese and other countries’ exports within product markets in terms of the price they receive in the US market. While China's export overlap with the OECD is much greater than one would predict given its low wages, the…