Dissecting China Asian financial analyst Stewart Paterson presented his new book, China, Trade and Power, at the free trade-focused Center for Strategic and International Studies last week. In the book, he argues that the West was unprepared for the impacts of China’s accession into the WTO and must now employ market-rebalancing mechanisms. Western government motives were noble (political change in China) even if unrealized, while Western multinational corporate goals were a bit more self-serving. For China, the result would be foreign direct investment, acquisition of technological know-how, and export markets. Paterson calls the result the largest labor and regulatory (Chinese pollution) arbitrage in history. It is now hard to ima...