This is when certain countries find it difficult to increase the share of domestic value added in their manufactured exports and sustain the movement of labour towards more productive and technologically more demanding manufacturing activities (UNCTAD, 2011: 40). Reversing the process of structural change is likely to have adverse distributional effects, because the labour displaced from the manufacturing sector will tend to move into low'-productivity activities, and often to informal services or unemployment. Rising income inequality in China over the past tw o decades has been characterized by a strong increase in spatial inequality (with high incomes concentrated in some locations and low' incomes in others).