quality improvement of Chinese export goods in its IIT with Germany. We compare the case of China with those of Eastern … between Germany and Eastern European countries is clearly narrowing. However, China's export prices to Germany are much lower … than Germany's export prices to China, and this gap has not narrowed over the last 23 years. This is at odds with the …

-industry trade within EU countries as well as with Eastern European countries and with China. We find the Eastern European countries …’ rise up the quality ladder, and by contrast the substantially lower prices of China’s exports to EU countries vis …-à-vis China’s imports from them. The contrast between EU trade with the Eastern European countries and with China is present even …