Increasing export sophistication is an important goal of the reform of the scientific and technological system. However, few literature have focused on the impact of financial distortions and innovation restraints on China's export sophistication in various regions. Based on the financial distortion index and provincial-level data of China's high-tech industries, this paper empiricaly examine show financial distortions, innovation restraints and their interaction affect export sophistication. The study found that financial distortions and innovation restraints have a significant inhibitory effect on export sophistication. Financial distortions have exacerbated the eroding effect of innovation restraints on export sophistication, and this eroding effect of innovation restraints is even more pronounced when financial distortions exceed a certain threshold. In high-tech enterprises with low extroversion, small output value and low technology intensity, the inhibitory effect of financial distortions on export sophistication is particularly strong. Distorted earnings, R&D restraint, and technology lock-in are important channels through which financial distortions impede export sophistication. A series of robustness tests confirms the reliability of the above conclusions. This article provides a new research perspective and decision-making reference for deepening the reform of the financial and technological system and reshaping the international competitive advantage of China's industries.