Sas, this is too simplistic, and you know it. Why do you think the Chinese are so altruistic? What would happen to the Chinese Yuan if the Chinese stopped buying US Dollars with it? What would happen to the Chinese economy, still organized, to a large extent, around selling goods to the United States?
Nobody with any economics education questions the fact that seamstresses in China that will work for, say, a dollar a day, are more efficient than seamstresses who require $7 an hour. The question is, where will all this efficiency lead us?; the answer, I posit, is to the inevitable equalization of wages. So why should American or Australian or Western European workers wholeheartedly endorse free trade? It may be more efficient, but that's not going to do them any good. The benefits will accrue to those with capital--that is how it benefits an economy. But capital is almost completely mobile, so it will aggregate where taxes are lowest and currencies are most secure. And that is why I live in Hong Kong, not New York.