Globalization not reversed

TONG JIAHANG/FOR CHINA DAILY The resilience from developing countries' opening-up has become a critical force for resisting rather than driving the anti-globalization movement by some developed nations Since the turn of the century, rising globalization and inequality have fueled anti-globalization sentiments. To start with, participating in global value chains has reduced developing countries' domestic income inequality. Global value chain participation can create more job opportunities for workers and attract a large amount of foreign direct investment, thus helping developing countries "make the cake bigger".The United Nations Conference on Trade and Development has found that economies with fastest growing participation in global value chains have GDP per capita growth rates 2 percentage points above the average. Facing shocks from global value chain participation, developing countries are not inclined to resort to protectionist trade policies such as tariffs and import quotas. That said, as developing countries climb up the global value chains, income inequality within these countries will continuously worsen, resulting in greater pressure for them to roll out protectionist trade policies.