Trading with China: Productivity gains, job losses

We analyze the impact on sector-level productivity in advanced economies of trade with China between the mid-1990s and late-2000s, separately identifying the export and import channels. Our findings point to large productivity gains from growing trade with China. •This paper analyzes the impact on sector-level productivity in advanced economies of trade with China.•Main findings suggest large productivity gains from growing trade with China.•Meanwhile, findings on adverse labor market impacts from imports points to a critical role for policy in redistributing the gains from trade.