We calculate carbon dioxide (CO 2 ) emissions embodied in China's net exports using a multi-regional input–output database. We find that the majority of China's export-embodied CO 2 is associated with production of machinery and equipment rather than energy-intensive products, such as steel and aluminum. In 2007, the largest net recipients of embodied CO 2 emissions from China include the EU (360millionmetrictons, mmt), the US (337mmt) and Japan (109mmt). Overall, annual CO 2 emissions embodied in China's net exports totaled 1177mmt, equal to 22% of China's total CO 2 emissions. We also develop a global general equilibrium model with a detailed treatment of energy and CO 2 emissions. We use the model to analyze the impact of a sectoral shift in the Chinese economy away from industry and towards services, both without and with a decrease in China's trade surplus, and a tax on energy-intensive exports, which reflect policy objectives in China's Twelfth Five-Year Plan (2011–2015). We find that without a decrease in the trade surplus, both policies will have a limited impact on China's net exports of embodied CO 2 emissions. The policies have an even smaller effect on global emissions, as reduced production in China is partially offset by increased production elsewhere.