It seems that "globalization processes" are failing. Instead, there has been an increase in nationalist and protectionist policies in the Western world. Therefore, it may force structural changes in international trade. The main purpose of this article is to uncover whether any changes and any income distribution in the Western world can be traced back to changing trading patterns. More specifically, there is increased efficiency in wages and opportunities for workers between export-oriented firms and the rest. China tends to trade heavily produced goods with more human capital. This leads to more vertical intra-industry trade with Western countries. Horizontal intra-industry trade provides positive economies and greater product variety for consumers, while vertical intra-industry trade is responsible for further structural change. Especially the presence of unskilled workers in the USA and the EU, experienced people take the gains of structural change. Thus, China's rising vertical intra-industry trade is responsible for some of the sectoral changes in Western countries and the separation of less-skilled workers. As a result, less-skilled workers in Western countries are consistently worse off. This may be one of many reasons to explain the rise of populism, nationalism, and protectionism in current western politics.
International Trade Intra and Inter-Industry Trade Economic Sectors China EU USA