Abstract: The paper constructs an index of technological complexity (ITC), and divides Chinese manufacturing sectors into low-tech sectors and high-tech ones using value-added data. Results show that precision machinery and general machinery, which are usually regarded as high-tech sectors, actually belong to low technological ones. Econometric model is establishes to test the technological advantage and spillovers of outsourcee manufacturers, with specific origins from the US and Japan. Estimate results show that (1) Outsourcee manufacturers have remarkable technological advantage over non-outsourcees, with those of US origin possessing higher advantage than those of Japanese origin. Moreover, both US and Japanese outsourcee manufacturers own less technological advantage than those of other sources in low-tech sectors, while greater advantage in high-tech sectors. (2) Outsourcees exert positive spillovers on non-outsourcees in general, with US outsourcees showing higher spillovers than Japanese ones. In low-tech sectors, outsourcees of both US and Japan exert positive spillovers, while those of other origins demonstrating negative ones, crowing out the production of non-outsourcees. (3) There presents negative correlation between technological advantage and spillovers, and it is particularly evident in low-tech sectors.