That every increase of the stock or revenue of a nation
cannot be considered as an increase of the real funds for the
maintenance of labour and, therefore, cannot have the same good
effect upon the condition of the poor, will appear in a strong
light if the argument be applied to China.

Dr Adam Smith observes that China has probably long been as
rich as the nature of her laws and institutions will admit, but
that with other laws and institutions, and if foreign commerce
were had in honour, she might still be much richer. The question
is, would such an increase of wealth be an increase of the real
funds for the maintenance of labour, and consequently tend to
place the lower classes of people in China in a state of greater
plenty?

It is evident, that if trade and foreign commerce were held
in great honour in China, from the plenty of labourers, and the
cheapness of labour, she might work up manufactures for foreign
sale to an immense amount. It is equally evident that from the
great bulk of provisions and the amazing extent of her inland
territory she could not in return import such a quantity as would
be any sensible addition to the annual stock of subsistence in
the country. Her immense amount of manufactures, therefore, she
would exchange, chiefly, for luxuries collected from all parts of
the world. At present, it appears, that no labour whatever is
spared in the production of food. The country is rather
over-people in proportion to what its stock can employ, and
labour is, therefore, so abundant, that no pains are taken to
abridge it. The consequence of this is, probably, the greatest
production of food that the soil can possibly afford, for it will