Home
/
RELIGION & LIBERTY ONLINE
/
Free trade with China is still good for us all
Free trade with China is still good for us all
May 14, 2025 5:37 PM

Despite pushback from both left and right, free markets should always be supported, because they free people to live out their potential—even in despotic regimes like China’s.

Read More…

Doug Irwin in his seminal book Free Trade Under Fire points out that Democrats and Republicans have historically vacillated on free trade. The Democratic Party of the late 19th century up until World War II was the party of trade liberalization when Republicans consistently voted for high tariffs. From the 1950s through the early ʼ90s, there was a bipartisan consensus favoring reduced tariffs.

Since NAFTA, a free trade agreement signed into law by President Bill Clinton, support for free trade among Democrats and Republicans has flip-flopped. Labor unions have generally opposed free trade agreements, which helps us understand the shift among Democrats. Republican president Donald Trump engaged in an all-out trade war with China and ran his presidency largely on an anti-free-trade agenda.

In modern conservative circles, free trade is continually mocked and rejected but not because of labor union objection. The conservative case against free trade stems from a mistake, shared by Democrats, that trade among nations is a zero-sum game. I was recently at a conference of conservatives in which two alarming statements were made: “You can either have free trade or free markets but not both,” and “Comparative advantage doesn’t work.”

As an economist, these are shocking statements, both because they ing from conservatives, whom I expect to understand economics, and because they are glaringly wrong. When giving a reasoned economic response, I am sometimes labeled a “globalist,” which I suppose, reading between the hyperbolic lines, means I must hate America.

Nothing could be further from the truth. You can love your country and unapologetically support free trade at all times and under all circumstances. Free trade is about opening markets, and markets are about people. Ensuring the freedom to sell your ideas, labor, skills, and talents is the best way to love your neighbor by serving them.

Free trade is the world’s most successful anti-poverty program. It opens markets and brings goods and services heretofore both unavailable and unthinkable. Free trade widens the circles of cooperation and allows us both to benefit from and make contributions to human flourishing; this is our Christian duty. Free trade removes the shackles of subsistence farming and the grind of daily survival, and allows the possibility of human innovation and creativity to be shared across the globe. Free trade moves us out of the zero-sum game of survival of the strongest and into the positive-sum game where all parties win, and where we are empowered with new choices and opportunities. These facts are not new; they hark back to the insights of Adam Smith, who in 1776 wrote:

What is prudence in the conduct of every family can scarce be folly in that of a great kingdom. If a foreign country can supply us with modity cheaper than we ourselves can make it, better buy it of them with some part of the produce of our own industry, employed in a way in which we have some advantage.

We are mercially integrated world, and that makes us all better. Free trade is the prudent course of action because it means that we each produce the things we are relatively better at doing. In this we actualize our parative advantages, and thus are freed from producing those things for which we would be higher-cost producers. This is the nature of stewardship, and it allows us to widen the circles of cooperation. If you are wearing a suit that you didn’t make, you are a living example parative advantage working.

Yet free trade and moving from more closed-trade relationships to more open-trade relationships bring great objections. British historian Thomas Babington Macaulay said, “Free trade, one of the greatest blessings which a government can confer on a people, is in almost every country unpopular.” Most of the conservative objections I hear to free trade focus on our current geopolitical relationship with China. Let’s face it, China is no bastion of free markets. Rather, it is a country ruled by authoritarians who hate freedom. That’s not just a bad thing for us; it’s bad for the citizens of China, all of whom are made in God’s image and likeness and have creative potential but live under the yoke of economic and political authoritarianism.

This is no excuse to abandon free trade with China; we need free trade with China now more than ever. Since 1980, with limited internal reforms, China has raised 800 million people from abject poverty. China has moved from “unfree” in the Economic Freedom data to “mostly unfree.” Some progress is better than no progress, and the future remains undetermined.

There is great work to be done in China, and the world watches with bated breath as their government engages in genocide and tyranny. But here is where the economic way of thinking es necessary. China needs free trade now more than ever. Our trade policy should be directed at how to trade with entrepreneurs in China while not supporting their government and its state-owned enterprises. We can hold the Chinese government accountable for its cheating and espionage without throwing the baby out with the bathwater. Creative regional trade policy can be part of the solution. But denying ordinary Chinese citizens a better life by denying them access to economic opportunity is never the answer.

Not too long ago, skeptics of free trade were worried that Japan was buying up the world and would have a larger economy than ours. What economics teaches us is that anytime a country makes internal changes in the direction of free markets, their economy will grow. That is a good thing, because as individuals in other countries grow richer, they have more money to spend on things we produce, and we have more entrepreneurs from which w, can benefit. I argue that this is what we want in China—more trade that allows Chinese citizens to grow richer. This is also the best deterrent to greater restrictions on freedom by the Chinese government.

Some worry that China’s economy will eclipse ours in size, to which economists respond, “I hope so.” China has a population that is 4.3 times as big as the United States. We should hope their economy is bigger. In a regime of free markets and political liberalism, this is an indicator of growing wealth and prosperity. Free trade frees people, and that is what China needs. Free trade will unleash human creativity. What we can and should do is support free trade with people wherever and whenever possible. It’s always time for free trade.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
The Healthcare Debate’s False Premise
Everybody realizes that the current healthcare system in the United States has problems. Unfortunately, much of the discussion about what to do rests on a false premise. The argument goes something like this: Our current free market system is not working: health care costs are astronomically high, and close to 50 million people aren’t insured. Maybe it’s time to let the government try its hand. But we don’t have a free market health system; we have a highly managed, bureaucratic...
Healthcare–Don’t Forget the Morality of It
One of the main arguments for nationalized health care is a moral argument: Health care is a right and a moral and just society should ensure that its people are taken care of–and the state has the responsibility to do this. Bracketing for the time being whether health care is actually a right or not–it is clearly a good, but all goods are not necessarily rights–whether the state should be the provider of it is another question. But there is...
The Truth Will Set Us Free
God is rational, and the universe is governed by unchanging natural laws instituted by Him. The Bible tells us in the Book of Genesis that “God created the heavens and the earth.” God is not arbitrary; the Bible also tells us that He is just and that He keeps promises to His people. The prophet Jeremiah tells us that God has established “ordinances of heaven and earth.” Since e from a perfect lawgiver, we know that these laws do not...
Biblical Reasons to Give
Dr. David Murray of Puritan Reformed Theological Seminary investigates the concept of “biblical fundraising,” reasons to continue to give in the midst of difficult economic times, in the latest edition of his vcast, “puritanPod.” Dr. Murray uses 2 Corinthians 9 as the basis for his brief but valuable message. Check out the video here. ...
Those Seven Deadly Virtues
In the musical Camelot which first appeared on stage in 1960, Mordred — the antagonist, evil traitor and eventual deliverer of a mortal wound to King Arthur — appropriately lauds the antithesis of what good men are to pursue with his signature song titled “The Seven Deadly Virtues” the first line of which ends “those nasty little traps.” The lyrics are clever. “Humility,” Mordred tells us, “means to be hurt. It’s not the earth the meek inherit but the dirt.”...
Public Discourse: Rethinking Economics in the Post-Crisis World
The Public Discourse recently published my article, Rethinking Economics in the Post-Crisis World. Text follows: In the wake of the financial crisis, we need an economics with greater humility about its predictive power and an increased understanding of plicated human beings who, when the discipline is rightly understood, lie at its center. Apart from bankers and politicians, few groups have received as much blame for the 2008 financial crisis as economists. “Economists are the forgotten guilty men” was how Anatole...
Dalrymple on “the right to healthcare”
[update below] British physician Theodore Dalrymple weighs in on government healthcare and “the right to health care” in a new Wall Street Journal piece. A few choice passages: Where does the right to health e from? Did it exist in, say, 250 B.C., or in A.D. 1750? If it did, how was it that our ancestors, who were no less intelligent than we, pletely to notice it? … When the supposed right to health care is widely recognized, as in...
Radio Free Acton is Back / Perspectives on Health Care Reform, Part 1
The Radio Free Acton crew is back in the studio! On today’s broadcast, Dr. Donald P. Condit and Dr. Kevin Schmiesing join our host Marc VanderMaas for a discussion of the ins and outs of the US health care system. Dr. Condit gives us some background on how the current system came into being, the problems associated with it, and the pitfalls of the current healthcare reform proposals in Washington. Next week RFA will be back for part 2, bringing...
Wilhelm Ropke for Today
Spurred on by listening to and reading Samuel Gregg, I’ve been making my way through Wilhelm Ropke’s A Humane Economy which is really a special book. The following passage (on p. 69) really caught my attention with regard to our current situation: Democracy is, in the long patible with freedom only on condition that all, or at least most, voters are agreed that certain supreme norms and principles of public life and economic order must remain outside the sphere of...
Five Simple Arguments Against Government Healthcare
The argument from federalism: One of the great benefits of federalism is that the states can act as the laboratories of democracy. If a new public policy is tried in the states and works (as happened with welfare reform in Michigan and Wisconsin), then a similar program has a good chance of succeeding at the national level. The welfare reform went national and proved to be one of the most successful public policy initiatives of the last half century. On...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved