Jacob Soll in Politico:
One of the most enduring ideas in economics is that free markets bring peace between countries. It comes from the notion that commerce drives humans to follow their mutual material interests rather than make destructive war due to passions.
This was the animating force behind the U.S. granting China its “most-favored-nation” trade status in 2000, which allows for free trade and economic cooperation. Republicans and Democrats alike assured the public that the deal would bring “constructive engagement” and expose communist China to America’s “ideals” of democracy. Where are we today? Beijing has moved closer to authoritarianism, economic competition is fiercer than ever, and American and Chinese diplomatic relations are near a crisis point, with both countries brandishing threats of war. Free trade has brought some peace, but it has not brought lasting friendship between the world’s two superpowers.