Home
/
RELIGION & LIBERTY ONLINE
/
Free trade with China is still good for us all
Free trade with China is still good for us all
Jan 12, 2026 5:32 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
Kennedy on CST and Unions
Robert Kennedy, author of Acton’s CSTS volume, The Good that Business Does, weighs in on the Wisconsin/Ohio flap over public sector unions and collective bargaining in this interview with ZENIT. A sample: The Church has certainly been a champion of the right of workers to form labor unions but has never argued that unions have the liberty to undermine mon good. Like many other kinds of organizations in many other sectors of society, unions can lose sight of their responsibility...
Unintended Consequences and Wind Turbines
With the surge in oil prices, there’s renewed interest in alternative energy options. Numerous countries have gradually taken steps to promoting renewable or clean energy technologies, and it seems the United States is drifting more towards favoring alternative energy options as the Obama Administration is looking at banning off shore drilling along the continental shelf until 2012 and beyond. However, before we move farther down this road, a critical analysis of the pros and cons is a must. A more...
Does your 401K make you an idolator?
Here’s today’s offering from Jim Wallis’ Rediscovering Values for Lent on the Sojourners website: Today, instead of statues, we have hedge funds, mortgage-backed securities, 401(k)s, and mutual funds. We place blind faith in the hope that the stock indexes will just keep rising and real estate prices keep climbing. Market mechanisms were supposed to distribute risk so well that those who were reckless would never see the consequences of their actions. Trust, security, and hope in the future were all...
‘A Call for Intergenerational Justice’ and the Question of Economic Growth
While there is much to applaud in the Center for Public Justice and Evangelicals for Social Action’s “A Call for Intergenerational Justice,” the lack of discussion of the problem of economic growth is troubling. I believe Don Peck is correct when he writes in The Atlantic: If it persists much longer, this era of high joblessness will likely change the life course and character of a generation of young adults—and quite possibly those of the children behind them as well....
Jeff Jacoby: Jesus won’t tell them what to cut
Writing in the Boston Globe, columnist Jeff Jacoby says that a “more fundamental problem with the “What Would Jesus Cut?’’ campaign is its planted axiom that Jesus would want Congress to do anything at all.” As a believing Jew and a conservative, I don’t share the religious outlook or political priorities of Wallis and his co-signers. But you don’t have to be Christian or liberal to believe that in God’s eyes, a society is judged above all by its concern...
Budgets, the Church, and the Welfare State
In this mentary, which will appear tomorrow, I summarize and explore a bit more fully some of the discussion surrounding evangelical and religious engagement of the budget battles in Washington. One of my core concerns is that the approaches seem to assume too much ongoing and primary responsibility on the part of the federal government for providing direct material assistance to the poor. As “A Call for Intergenerational Justice” puts it, “To reduce our federal debt at the expense of...
Review: Defending Constantine
We’ll have the Winter 2011 issue of Religion & Liberty online later this week and you won’t want to miss it. Subscribe here. We’re previewing the issue on the PowerBlog with a book review that, because of space limitations, had to be shortened. This post publishes it in full. Constantine and the Great Transformation Defending Constantine by Peter J. Leithart (IVP Academic, 2010) Reviewed by Johannes L. Jacobse The argument that the lifting of the persecutions of early Christians and...
Food or Fuel?
A big report is due out tomorrow which may have a positive or negative impact on economies across the globe. These numbers are ing from the New York Stock Exchange, NASDAQ, the Tokyo Stock Exchange, the London Stock Exchange, or any other stock exchange; they are ing from a report being released by the U.S. Agriculture Department (USDA). It will talk about the role the U.S. will play in preventing or reducing the effects of a global food shortage. There...
Shane Claiborne’s Budget Babbling
Writing for the Huffington Post, Shane Claiborne is also asking “What Would Jesus Cut?” I’m still opposed to the whole notion of reducing Christ to budget director, as my earlier post points out. But Jesus as Secretary of Defense of the United States or rather, Jesus as secretary of peace as proposed by Congressman Dennis Kucinich is equally unhelpful. Mark Tooley, president of IRD, has already weighed in on Shane Claiborne’s not so brilliant drafting of Jesus for president. As...
Back to Budget Basics
In this week’s Acton Commentary, “Back to Budget Basics,” I argue that the public debt crisis facing the federal government is such that “All government spending, including entitlements, defense, and other programs, must be subjected to rigorous and principled analysis.” This piece summarizes much of my analysis of various Christian budget campaigns over the last week (here, here, and here). There are things that are more or less central to the primary task of government, and our spending priorities should...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved