When China mostly complied, it was not a victory for free trade, but an example of imperialism. The Chinese initially said this was an invasion of their national sovereignty, and they're right. No one put Mickey Kantor and his friends in charge of the laws of other nations. The hidden reason for the sanctions is that China hasn't joined the World Trade Organization, the bureaucratic monster created by the recent Gatt treaty. Mr. Kantor wanted American consumers to be looted until the Chinese surrendered.
Capitalism is the profit and loss system.
But under Nafta, profits are private and losses are socialized. But as the peso fizzled, so did their profits. In the old days, investors scrutinized the soundness of foreign currencies before investing, and took their lumps if they were wrong. Now, the more vulnerable their position, the more they can count on long-run profits at others' expense. They were rare in the 19th century when trade was largely free, but in our century of trade wars and real wars, they are more common than ever.