This paper analyzes the product quality of Chinese exporting goods and Japanese exporting goods. We used HS 10­digit highly disaggregated Korean trade data for the period from the year of 1992 to 2008. The regression results show that Japanese goods are better than Chinese goods in the absolute quality, but that the quality levels of Chinese products have increased more rapidly than those of Japanese goods. Recently, the relative quality levels of Chinese products, considering prices of goods, are better than those of Japanese ones. The paper shows that the improvement in product quality is the main factor affecting China’s rapid export growth into the Korean market.