This paper examines the impact of ethnic Chinese networks on bilateral trade, focusing on their role in facilitating international trade, particularly within Southeast Asia. The authors use a gravity model to analyze the effects of ethnic Chinese networks on trade, considering both differentiated and homogeneous products. They find that ethnic Chinese networks significantly increase bilateral trade, especially for differentiated products within Southeast Asia. The impact is much greater for these products compared to homogeneous products, suggesting that ethnic Chinese networks help match international buyers and sellers in characteristic space. For other country pairs, the effects of ethnic Chinese networks are not statistically significant across commodity groups. The study also suggests that ethnic Chinese communities that are small fractions of their countries' populations facilitate trade by enforcing community sanctions, while those that are large fractions facilitate trade through information exchange and matching services. The results highlight the importance of informal trade barriers and the role of ethnic Chinese networks in overcoming them.This paper examines the impact of ethnic Chinese networks on bilateral trade, focusing on their role in facilitating international trade, particularly within Southeast Asia. The authors use a gravity model to analyze the effects of ethnic Chinese networks on trade, considering both differentiated and homogeneous products. They find that ethnic Chinese networks significantly increase bilateral trade, especially for differentiated products within Southeast Asia. The impact is much greater for these products compared to homogeneous products, suggesting that ethnic Chinese networks help match international buyers and sellers in characteristic space. For other country pairs, the effects of ethnic Chinese networks are not statistically significant across commodity groups. The study also suggests that ethnic Chinese communities that are small fractions of their countries' populations facilitate trade by enforcing community sanctions, while those that are large fractions facilitate trade through information exchange and matching services. The results highlight the importance of informal trade barriers and the role of ethnic Chinese networks in overcoming them.