Competing with the dragon

China’s rapid rise on the global economic stage might have substantial and unequal employment effects in advanced industrialized democracies given China’s large volume of low-wage labor. In a new paper written together with Olaf van Vliet, we analyse the effects of Chinese trade competition across 17 sectors in 18 countries. We devote attention to a new channel, increased competition from China in foreign export markets. Our empirical findings reveal overall employment declines in sectors more exposed to Chinese imports. Furthermore, our results suggest that employment effects are not equally shared across skill levels, as the share of hours worked worsens for low-skilled workers.