I agree that this is the obvious thing to do, but the "Serious People" still believe that once you lower trade barriers, human rights and democracy flow as soon as funds arrive in Chinese banks.
This is against the kind of international "free-trade" agreements and laws that every major country is a party to.
http://www.nytimes.com/1991/08/23/business/company-news-us-b...
Free-trade agreements are a double-edged sword. Pretending they're universally and unambiguously beneficial by default is absurd. Especially with the amount of lobbying (including domestic companies lobbying abroad via their local subsidiaries) that influences their terms.
BTW, many Europeans don't think of these regulations (privacy laws, etc) in the EU as regulations, they think of them as rights. Facebook & co have to jump to ridiculous hoops[0] to use their business model in Europe -- for the users, that's a feature, not a bug.
We have reasonable work weeks and healthy working conditions because we fought against that exploitation. But instead of stopping it, we ended up merely exporting it; we don't make our stuff here anymore, but it's made in other countries where the conditions we had in the 19th century are still legal.
If we demand the same humane conditions from imported products as we do for locally manufactured goods, then either they get better working conditions, or we get some of those lost jobs back. Probably a bit of both. Either way, everybody wins. (Except that stuff gets a bit more expensive, but that's unavoidable when you start paying a fair price.)