Home
/
RELIGION & LIBERTY ONLINE
/
Free trade with China is still good for us all
Free trade with China is still good for us all
Aug 25, 2025 2:43 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
Why is the State of the Union Always ‘Strong’?
I have a can’t miss prediction: tonight, when President Obama gives his eighth State of the Union address, he will describe the state of the union as “strong.” (I’ve made this prediction on this blog the past three years, so I’m hoping for a quadfecta of prescience tonight.) Admittedly, predicting that the state of our union will be described as “strong” is about as safe a bet as you can make when es to politics. Over the last hundred years...
The Jedi Knights Templar
The new Star Wars film embodies that ancient human striving for virtue and a higher spiritual order, says Dylan Pahman in this week’s Acton Commentary. The most recent installment in the Star Wars franchise, Episode VII “The Force Awakens” has blasted box-office records like the Death Star destroying Alderan, so far grossing over $1.7 billion. Clearly, the series has massively broad appeal. Much of the draw seems to be the allure of the Jedi, the mystical guardians of the Star...
Alabaster Coffee and the Call to Creative Service
Prior to opening Alabaster Coffee in downtown Williamsport, PA, founder Karl Fisher was in full-time vocational ministry.For many, that sort of transition happens in reverse, but for Fisher, moving from churchplace tomarketplace amplified the scope of his service in new and unexpected ways. “I have already viewed my life as, ‘How are we bringing the Gospel to munity?’” Fisher says. “But now, in many ways, not being a vocational pastor and being in the marketplace, there are definitely aspects of...
The Great Awakening shaped the constitution—and religious freedom
How did religious freedom develop in America? It didn’t happen the way most of us were taught in school—whether in elementary school or law school. In fact, notes legal scholar Richard Garnett, the “standard story” about religious freedom in Early America is profoundly misleading: In my experience, this “standard story” is familiar to most Americans, whether or not they are historians or constitutional lawyers, though lawyers have probably been more exposed to and influenced by it than most. In this...
Federal Government Restores Some Freedom to Free Range Parents
My parents should have been jailed for child neglect. At least that’s what would be their fate if I were growing up today. Fortunately for them (and for me), I was a child during the 1970s, a time when kids were (mostly) free to explore the world. At age seven I was allowed to wander a mile in each direction from my home. By age nine I was exploring the underground sewers and drainage system of Wichita Falls, Texas. When...
How Churches Can Help the 93 Percent of U.S. Counties That Haven’t Recovered From Recession
“Anyone claiming that America’s economy is in decline is peddling fiction,” said President Obama in last night’s State of the Union address. Technically, the president is correct: The American economy, as a whole, is not in decline. But for most Americans, the state of the American economy is less important than the economy of their state, county, and city. “Americans don’t live in a single economic place,” says Emilia Istrate, the director of research and outreach for the National Association...
When Generosity Transforms a Community
Bishop Hannington longed to see an awakening to generosity in his town of Bundibugyo, Uganda, where many viewed giving more as a matter of duty than heartfelt joy. Yet what at first seemed like a significantchallenge soon grew evensteeper. After fleeing their town for two years due to the chaos of civil war, munity returned to Bundibugyo to find their pletely destroyed. “The houses had been torn down, the farms had nothing in them, churches had been demolished, schools had...
New Issue of the Journal of Markets & Morality (18.2)
Our most recent issue of the Journal of Markets & Morality, vol. 18, no. 2, has now been published online and print issues are in the mail. In addition to our regular slate of articles examining the intersections between faith, freedom, markets, and morality, this issue contains the text of the Theology of Work Consultation symposium at the 2014 conference of the Evangelical Theological Society. The subject was “The Economics of the Theological Vocation.” The entire symposium, as well as...
10 Quotes for Religious Freedom Day
Thomas Jefferson wanted what he considered to be his three greatest achievements to be listed on his tombstone. The inscription, as he stipulated, reads “Here was buried Thomas Jefferson, author of the Declaration of American Independence, of the Statute of Virginia for Religious Freedom, and father of the University of Virginia.” On Saturdaywe celebrate the 230th anniversary of one of those great creations: the passage, in 1786, of the Virginia Statute of Religious Freedom. Each year, the President declares January...
Now Available: ‘Of the Law of Nature’ by Matthew Hale
Legal historian Sir Matthew Hale has been described as “one of the greatest jurists of the mon law.” Yet during his lifetime (1609-1676), he chose not to publish most of his legal writings, going so far as toprohibitsuch publication in his will. Against these wishes, many manuscripts were copied and circulated by other lawyers after his death. One such work, Of the Law of Nature, was written on multiple hand copies, and now, for the first time ever, it is...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved