KCG Working Paper No. 30: Technological Sophistication Made in China? – New Insights from Germany’s Evaluation of COVID-19 Antigen Rapid Tests

Authors: Silas Dreier and Wan-Hsin Liu

By analyzing a unique dataset from Germany’s evaluation of COVID-19 antigen rapid tests, we show that Chinese firms can excel under today’s global competition and produce tests at quality levels higher than China’s income level would suggest. We find these achievements are positively associated with China’s rising innovation capability and robust industrial base. Further strengthening China’s innovation and industrial base to support Chinese firms’ future accomplishments is what the Chinese government clearly aims for.