Federal Reserve Bank of Dallas . Bob McTeer About Pres. Following a recent speech, a questioner asked me to comment on China. One kind soul later called my answer profound. She said it captured the essence of the matter.
China has lots and lots of people.
Because of the country's size, population and strategic importance, the arguments for free trade apply to China in spades. Many people concede the economic argument, though, and object to establishing permanent normal trade relations with China for human rights, labor or environmental reasons. Trade opens countries, strengthens the private sector, promotes the rule of law and diminishes the relative role of government. Trade raises living standards, making labor and environmental reforms more affordable. I am sure the Chinese love their children as much as we hate child labor.