Chinese Free Trade Is No Threat to American Free Trade
ByIntroduction
As debate over the Trans Pacific Partnership (TPP) is heating up, the White House, and some commentators, have weighed in with an argument for this trade pact that has nothing to do with economics: We need the TPP, they say, because without it, China will impose its own trade rules on the region, and those rules will undermine American trade values. According to President Obama, “[W]e have to make sure the United States — and not countries like China — is the one writing this century’s rules for the world’s economy.”1 Along the same lines, economist Tyler Cowen says: “[E]ither this deal happens on American terms, or an alternative deal arises on Chinese terms without our participation.”2
This rhetoric makes it appear as though we are in the midst of a “clash of civilizations” on trade policy. Chinese mercantilism and oppression are up against American free markets and liberty…
Chinese Free Trade Is No Threat to American Free Trade
