I recently had some fascinating discussions with Asian businessmen about the ever-increasing tariffs on Chinese goods imposed by the US and EU. China's production of electric vehicles (EVs), solar panels, and lithium-ion batteries is criticised as "overcapacity". Yet, China exports only 12% of its EVs, compared to 80% from Germany, 50% from Japan, and 25% from the US. These countries are not being accused of overcapacity. Debates recall Adam Smith’s "invisible hand" as outlined in the "The Wealth of Nations" and David Ricardo’s comparative advantage. The historic repeal of Britain's Corn Laws in 1846 is still relevant today. Free trade advocates argue that China's lower manufacturing costs and advanced supply chains lead to more efficient global production and lower consumer costs. However, we are urged to ignore these benefits. Free-market capitalism and markets operating without government or other external intervention have gone with the wind. The practice of free trade certainly needs to be accompanied by support for communities hurt by economic change, but the aggregate benefits are substantial. Mercantilism, a form of economic nationalism that seeks, mostly in vain, to increase the prosperity and power of a nation through restrictive trade practices, has taken over. It is unfortunate that this approach targets products crucial for mitigating climate change. Sanctions on these items undermine global climate efforts by increasing costs and slowing the adoption of clean technologies. hashtag#solarpanel hashtag#lithiumbatteries hashtag#electricvehicles hashtag#ev hashtag#freetrade hashtag#china hashtag#mercantilism