It sounds strange, but China is MORE capitalist than the US. Significantly more. In fact, compared to China America almost looks like a socialist state.
China's has very few business regulations. The media is heavily censored, human rights are restricted, but business is far less hogtied by red tape than in the US or Europe.
Beijing is a soft touch government as far as environmental laws are concerned, and for copyright, too. There is little corporation tax, and small businesses have far more freedom than in the US (Workers have few rights, zoning laws are relaxed, and many can get away with only paying the barest minimum of tax). So it's easier to set up in business in China than it is in the US, and far cheaper. China's also in the WTO and has MFN status with the US.
Internally, China's markets are also freer than in the US. For example, in the US each state has its own tax laws and moving goods between states is almost like moving them between different countries (Think alcohol). In China, this isn't a problem.
China's state healthcare system is worse than Americas. So, medical care is extensively a business. Private hospitals, private healthcare.
It's the same with schools. Even state schools charge fees and work on capitalist principals. Private schools, more so.
There is no realistic state support for the elderly, so pensions and welfare is often mostly private, too.
There is almost nothing left of Mao's dream of a socialist state. Beijing calls itself Communist, but it's not been communist since Deng's reforms in the late 1980s and early 1990s. The state owns a lot of companies, and a lot of land, but the companies that it owns compete with the private sector, and with each other, and land is't really a capitalist issue.
China is proof that you democracy and freedom are not essential components for capitalism, or for a free market. Or for economic growth. China has managed to rise to be the world's second largest economy while remaining a single part dictatorship.
My life and experiences in China.
· 8 years ago