Abstract: In views of the added value chains and with the consideration of the structures of commodities, the analysis is carried out about the industrial upgrading in China under the economic and trade cooperation between China and India. The research shows the most China exports to India are the high-tech and the exports′ structure has been continuously improved under the Lall′s classification. Meanwhile, in view of the added value chains, China′s exports to India with unit price advantage mainly focus on primary products according to the SITC top classification, which have strong complementary relationship with India; China′s unit price advantage is relatively weak in manufactured goods, which also have weaker complementary relationship with India comparing to the primary although this relationship is strengthened in recent years. This result is different from the one according to the Lall′s classification and inconsistent with the theoretical conclusion that the complementary relationship between China and India should be strong considering two countries′ economic development and needs.

Key words: economic and trade cooperation, added value chains, complementary relationship, industrial upgrading