Whether it’s welcome or not, globalization has already happened and can’t be avoided, Zhou Xiaochuan, governor of China’s central bank, said on March 25.
The governor called on all parties to face the new reality at a plenary session during the Boao Forum for Asia Annual Conference.
Protecting the manufacturing sector, for example, is not sensible economically if a country has comparative advantages in other sectors, which may come at the cost of hurting other sectors, he warned.
Zhou said that export producers have to be allowed the freedom in choosing component and technology inputs. “If there’s restriction on the import side, you may lose competitiveness,” Zhou said.
The negative influence of globalization mainly comes from employment, he said, adding that countries should focus on retraining workers in other areas to improve their knowledge and skill set.