At a recent forum on “de-globalization” and the transformation of the real economy, scholars said that globalization is unlikely to reverse.

The “China Industrial Economics Frontier Forum: ‘De-globalization’ and the Transformation and Upgrading of the Real Economy” was held in Beijing from May 26 to 28. It was co-hosted by the China Industrial Economics Press and the Economy and Management Publishing House, both of which fall under the Chinese Academy of Social Sciences (CASS).

Calling for objective understanding of “de-globalization,” CASS Member and former Director of the Institute of Industrial Economics at CASS Jin Bei noted that the phenomenon is caused by a lack of inclusiveness in the process of globalization.

Industrial development amid globalization involves different countries and interest groups, especially major industrial projects, as well as extensive and complicated social interest groups, so it is unlikely that globalization will regress, he said, adding that an effective governance structure is needed.

Li Xiangyang, director of the National Institute of International Strategy under CASS, shed light on “anti-globalization,” which is characterized by a repudiation of the concept of economic globalization, quitting or threatening to quit related organizations, and a refusal to provide public goods.

Li attributed the root cause of “anti-globalization” to uneven distribution in the process of globalization. In other words, capital makes more profit than labor.

What the United States seeks is not “de-globalization,” but “reglobalization,” because the country will not forgo benefits brought by globalization, Li added.

Xie Danyang, dean of the Economics and Management School at Wuhan University, said that the path of globalization is rocky and there will be twists and turns, but the general direction and theme will not change.

The deepening of globalization necessitates increasing inclusiveness, Xie said. Inclusive, open globalization will make it easier to import advanced technologies and internationalized talent, and learn from advanced international ideas; and broad international markets can help a country to focus on certain products and services, boosting productivity.

The new type of globalization features a deeply integrated global value chain system, said Bao Qun, a professor of economics at Nankai University. As the international division of labor model based on borders declines, it is difficult for one single country to maximize its interests through unilateral nationalistic behaviors, he said.

Jin said that industrial transformation and upgrading is an urgent task for developed countries and emerging economies alike. While developed nations wish to revitalize the manufacturing sector and re-industrialize themselves, most developing countries hope to blend into industrialization and globalization more extensively to realize economic modernization and national prosperity.

In terms of industrialization, Huang Qunhui, director of the Institute of Industrial Economics at CASS, predicted that China will basically achieve industrialization in 2020. If no material setbacks occur, it will entirely realize industrialization and become a truly industrialized country around 2030, Huang said.