It seems that the “globalization” has failed. Instead, a rising number of people in the Western world prefer old nationalist and protectionist policies. One reason may be the challenge by structural change. In this paper, NOUS member Ralph Wrobel examines the question if any structural change and any spread of income in the Western World can be traced back to changing trade patterns. Obviously, there is a rising productivity gap between the export-oriented firms and the rest which leads to a rising gap in wages and opportunities for the workers. China is tending towards to trade more human-capital intensively produced goods. That leads to more vertical intra-industry trade with Western countries. While horizontal intra-industry trade brings positive economies of scale and a greater product variety for consumers, vertical intra-industry trade is responsible for more structural change.