This paper examines the role of ethnic Chinese networks in international trade. Using a gravity model, the authors find that ethnic Chinese networks increase bilateral trade, particularly for differentiated products within Southeast Asia. The effects are greater for differentiated products than for homogeneous ones, suggesting that ethnic Chinese networks help match international buyers and sellers in characteristics space. For other country pairs, the effects are not statistically significant across commodity groups. The authors interpret these findings as showing that ethnic Chinese communities that are large fractions of their countries' populations facilitate trade by helping to match international buyers and sellers, while smaller communities enforce community sanctions to deter opportunistic behavior. The smallest estimated increase in bilateral trade in differentiated products within Southeast Asia attributable to ethnic Chinese networks exceeds 150 percent, indicating that informal trade barriers are economically significant. The study also finds that ethnic Chinese networks have a greater impact on trade in differentiated products than in homogeneous ones, especially within Southeast Asia. The results suggest that ethnic Chinese networks provide market information and facilitate matching and referral services, which are more important for differentiated products. The study also finds that the impact of ethnic Chinese networks on trade is greater in Southeast Asia than in other regions. The authors conclude that ethnic Chinese networks play a significant role in overcoming informal trade barriers, particularly in facilitating international trade through market information and matching services. The study also highlights the importance of international legal institutions in facilitating trade. The authors suggest that policies should focus on improving information about trading opportunities and strengthening international legal institutions to reduce trade barriers.This paper examines the role of ethnic Chinese networks in international trade. Using a gravity model, the authors find that ethnic Chinese networks increase bilateral trade, particularly for differentiated products within Southeast Asia. The effects are greater for differentiated products than for homogeneous ones, suggesting that ethnic Chinese networks help match international buyers and sellers in characteristics space. For other country pairs, the effects are not statistically significant across commodity groups. The authors interpret these findings as showing that ethnic Chinese communities that are large fractions of their countries' populations facilitate trade by helping to match international buyers and sellers, while smaller communities enforce community sanctions to deter opportunistic behavior. The smallest estimated increase in bilateral trade in differentiated products within Southeast Asia attributable to ethnic Chinese networks exceeds 150 percent, indicating that informal trade barriers are economically significant. The study also finds that ethnic Chinese networks have a greater impact on trade in differentiated products than in homogeneous ones, especially within Southeast Asia. The results suggest that ethnic Chinese networks provide market information and facilitate matching and referral services, which are more important for differentiated products. The study also finds that the impact of ethnic Chinese networks on trade is greater in Southeast Asia than in other regions. The authors conclude that ethnic Chinese networks play a significant role in overcoming informal trade barriers, particularly in facilitating international trade through market information and matching services. The study also highlights the importance of international legal institutions in facilitating trade. The authors suggest that policies should focus on improving information about trading opportunities and strengthening international legal institutions to reduce trade barriers.