Figure 1: Product Space (1987) Source: based on UN Comtrade data Authors’ calculations Figure 2: Product Space (2006) Source: based on UN Comtrade data Authors’ calculations A closer inspection of the products in export basket with the highest China’s densities that are upgrades, underscores the fact of rapid industrial progress. In China’s 1987, the top 10 commodities with the highest densities, implying that they were more sophisticated than the average, were mainly low-tech items offering minimal opportunities for diversification (see Table 4). By 2006, the composition of the high density products had altered radically with many opening avenues for upgrading into more technologically advanced products with better market prospects (see Table 5). Thus industrial capabilities are strengthening as is its competiveness relative to higher China’s income countries. These findings are similar to those of Felipe et al (2010). Table 4: Top 10 commodities with highest density (1987) “upscale” Short description Density class Pyrotechnic articles 0.655046 MT2 451 Manufactured goods, nes 0.558615 LT2 1,325 Children's toys, indoor games, etc 0.474168 LT2 3,163 Travelling rugs, blankets (non electric), not 0.461357 LT1 1,934 knitted or crocheted Umbrellas, canes and similar articles and parts 0.458874 LT2 891 thereof Base metal domestic articles, nes, and parts 0.455813 LT2 981 thereof, nes Other materials of animal origin, nes 0.451113 PP 447 Fabrics, woven, of sheep's or lambs' wool or of 0.449691 LT1 4,309 fine hair, nes Soya beans 0.439272 PP 534 Hydrocarbons derivatives, non-halogenated 0.436489 RB2 4,983
Figure 1: Product Space (1987) Source: Authors’ calculations based on UN Comtrade data Figure 2: Product Space (2006) Source: Authors’ calculations based on UN Comtrade data A closer inspection of the products in China’s export basket with the highest densities that are upgrades, underscores the fact of China’s rapid industrial progress. In 1987, the top 10 commodities with the highest densities, implying that they were more sophisticated than the average, were mainly low-tech items offering minimal opportunities for diversification (see Table 4). By 2006, the composition of the high density products had altered radically with many opening avenues for upgrading into more technologically advanced products with better market prospects (see Table 5). Thus China’s industrial capabilities are strengthening as is its competiveness relative to higher income countries. These findings are similar to those of Felipe et al (2010). Table 4: Top 10 “upscale” commodities with highest density (1987) Short description Density class Pyrotechnic articles 0.655046 MT2 451 Manufactured goods, nes 0.558615 LT2 1,325 Children's toys, indoor games, etc 0.474168 LT2 3,163 Travelling rugs, blankets (non electric), not knitted or crocheted 0.461357 LT1 1,934 Umbrellas, canes and similar articles and parts thereof 0.458874 LT2 891 Base metal domestic articles, nes, and parts thereof, nes 0.455813 LT2 981 Other materials of animal origin, nes 0.451113 PP 447 Fabrics, woven, of sheep's or lambs' wool or of fine hair, nes 0.449691 LT1 4,309 Soya beans 0.439272 PP 534 Hydrocarbons derivatives, non-halogenated 0.436489 RB2 4,983
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