International trade discussion: I'm a STEMfag by trade,

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International trade discussion:

I'm a STEMfag by trade, starting to read some economic theory to get a better understanding. Starting with Hayek, because why not. I've always been a capitalist, free market enthusiast, and skeptic of state intervention.

My question is with regards to the influence of competition on our trade deals. Free trade in the U.S. is our ideal because companies that operate here have to play by the same rules. The only edge they can get over their competitors is a better and/or cheaper product. This works because entrepreneurs will find ways to make their system better than the next guy's.

Hayek, along with many free trade thinkers, admonish protectionist trade policies like tariffs on imported goods. The argument is that it's artificially changing conditions to benefit certain producers at the cost of the consumer.

But why is it considered free trade when a country like China produces a product that doesn't have to compete with U.S. made goods because the wage of the kids making it is 1/10th that of their American counterpart? From the producer side, two companies playing by different rules will only result in one having an inherent advantage. How can a country claim to be pro free trade when competition is rendered noncompetitive by state-run economies elsewhere?