On the High-Standard Trade Rules in the 21st Century and China’s Responsive Strategy—A Classical Liberalism Perspective

Abstract

Abstract In the nineteenth century, classical liberalism originated from Britain. Nearly all the countries across the globe had benefited from the liberal international economic order (LIEO) under the Pax Britannia. However, the United States has never taken in classical liberalism. Rather, it regards international trade as a “zero sum game” and upholds “fair trade” through the international institution of WTO/GATT. From the British free trade to the U.S. fair trade, from the WTO to the fragmented PTAs, and from free trade to protectionism, classical liberalism has been gradually fading away. The higher standards on the various non-tariff issues in the TPP have reached a new altitude against classical liberalism. In face of the high-standard trade rules in the 21st century, China should not follow them recklessly but give due consideration to the status quo of its economic development when negotiating FTAs in the future.