Home
/
RELIGION & LIBERTY ONLINE
/
Free trade with China is still good for us all
Free trade with China is still good for us all
Dec 30, 2025 2:25 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
VIDEO: Anthony Bradley on ‘Black and Tired’ at The Heritage Foundation
Acton Research Fellow Dr. Anthony Bradley spoke about his book Black and Tired: Essays on Race, Politics, Culture, and International Development at The Heritage Foundation earlier this month, and the video is now online. Dr. Bradley explained just why he called his book “Black and Tired:” The hopes and dreams, aspirations, virtues, institutions, values, principles that created the conditions that put me here today, are being sabotaged and eroded by those who have good intentions, but often do not think...
A Modest Proposal for Changing Higher Education
In this Great Recession, it is sad to travel through this great country and see the ranks of the unemployed crowded with so many youth. I think we can all agree that this is deplorable—and that we should endeavor to find an equitable and efficient method for improving the lives of our young people. So, I have a proposal: Tuition and books at a public university should be free to all students. Students would attend the public university closest to...
Samuel Gregg: GOP Candidates Must Debate Better
Acton’s director of research, Samuel Gregg, has contributed his thoughts on last night’s debate to National Review’s roundup. He was disappointed by the candidates’ performances: “with the exception of Newt Gingrich, substance did not feature highly in this debate.” These debates tend to be about talking points and about subtle digs at your opponent, not the kind of serious debate we had at the Palmetto Freedom Forum, but Gregg says, It’s too easy to say that such formats as Thursday...
Shareholder Activism on the Rise – from Nuns and Unitarians
The Manhattan Institute’s Proxy Monitor project is aimed at “shedding light on the influence of shareholder proposals on corporations.” It provides a thorough analysis of proposals made from 2008 – 2011 by activist investors — and believe it or not, only 35 percent of those proposals were related to corporate governance. Most of the shareholder proposals that panies deal with are attempts to direct pany in a more green or pacific or fair direction, and e from small shareholders who...
National Council of Churches ‘balancing the budget on the backs of the poor’?
A “budget is a moral document,” right? The Institute on Religion & Democracy reports that following the loss of a major donor, the National Council of Churches (NCC) finds itself “closer than ever before to the precipice” of financial collapse. The progressive/liberal church prised largely of mainline Protestant and Orthodox churches, is running out of dough. IRD’s Barton Gingerich: Evangelical Lutheran Church in America Presiding Bishop told the NCC’s September board meeting: “We have 18 months sustainability.” All voting NCC...
Remembering Robert Bosch, Global Entrepreneur
Uwe memorates the 150th anniversary of the birth of Robert Bosch: One hundred and fifty years ago, on Sept. 23, 1861, the visionary industrialist Robert Bosch was born in a village near Ulm in Germany. He became a global entrepreneur whose name is ubiquitous in the auto industry to this very day. And 125 years ago, he founded Robert Bosch GmbH, the largest privately owned corporation in the world today. In 1907, Bosch opened its first U.S. subsidiary. By the...
The Need to be a Victim
For some, in our still largely affluent society, there is a deep seated need to be a member of the victim class. The background of your socioeconomic privilege is no obstacle, as they must create a narrative that points to being a victim. While some might aspire to sainthood, others aspire to victimhood. This video and report courtesy of The Blaze sums it up well. It would be unfortunate if charades like this drown out the real instances of injustice...
Roger Scruton: No escaping morality in economics
Roger Scruton has written an excellent piece on the moral basis of free markets;it’s up at MercatorNet. He begins with the Islamic proscriptions of interest charged, insurance, and other trade in unreal things: Of course, an economy without interest, insurance, limited liability or the trade in debts would be a very different thing from the world economy today. It would be slow-moving, restricted, paratively impoverished. But that’s not the point: the economy proposed by the Prophet was not justified on...
“Let ’em fail”?
At the most recent GOP presidential debate, there was a famous exchange between CNN’s Wolf Blitzer, Rep. Ron Paul, and the partisan crowd. Blitzer asked Paul about a hypothetical 30-year-old man who refused to purchase health insurance, got sick, and needed extensive medical treatment. Blitzer asked “Who pays?” Paul replied, “That’s what freedom is all about, taking your own risks…” Blitzer interrupted him by asking “Are you saying the society should just let him die?” A few people in the...
Why the Journal of Markets & Morality?
In the latest issue of Religion & Liberty, Acton Institute executive direct Kris Mauren answers the question, “Why does the Acton Institute publish the Journal of Markets & Morality?” For more, check out my interview with Micheal Hickerson of the Emerging Scholars Network. You can support the work of the journal by getting a subscription for yourself or mending a subscription to your library of choice. ...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved