> Their economy is obviously capitalist.
Their economy is the exact opposite of Capitalist in fact. It's de facto state controlled top to bottom.
1) The Chinese economy is overwhelmingly state owned or directly controlled. All the major banks are directly owned or controlled by the government. All of their major industries, such as steel, aluminum and energy, are directly owned or controlled by the government. Their largest electronics and telecom companies such as Huawei and China Mobile are directly commanded by the government.
2) No company may do anything out of lock-step with the government. Whether you're Alibaba or Baidu, you must obey at all times, no matter what the stray edict of the week is. You may not challenge the party. Ask Tencent about the government's damaging, arbitrary restrictions on gaming for example. [1]
3) There are no actual property rights. Your property may be revoked, taken from you at any time for any reason. You will not get it back, and you have no ability to challenge this in a court of law. The Chinese Government issues arbitrary rules non-stop that alter your property rights and how property may be used (including randomly choosing to restrict what's acceptable day to day; one day you may have joke apps, the next day they're illegal).
4) The entire economy operates on a system of bribes. You can't operate anything in China without paying bribes. There are no exceptions, whether you're trying to operate a small food business or put up a skyscraper. This means the rule of law is entirely lacking, which is why Transparency International ranks China #77 in the world on corruption.
5) The economy is entirely closed to normal foreign business operations. You can't just set up a business in China as a foreigner. You can't buy Chinese businesses outright, or in most cases take a majority ownership position. Contrast this with the US (which isn't even the best example): you can spend less than a thousand dollars with Stripe Atlas and set up a US corporation at any time, without permission, having never once visited the country and you own it outright.
6) Capital is locked down. You may not take your wealth and flee the country. You and your capital are held captive by their very tight capital controls. You can hardly legally get enough cash out of China to buy a middle class house these days.
7) As a Chinese business you may not operate outside of the country in any manner that the government disagrees with. They approve all large transactions and all large investments. If they don't like something you've done, you will be forced to liquidate out of that position no matter the consequences.
8) It's almost entirely illegal to privately own farm land. This contributes to China having the most backwards and low output farming industry of any major economy.
How is all of this obviously Capitalistic? The state completely controls everything. It's the exact opposite of Capitalist.
[1] https://www.bloomberg.com/news/articles/2018-08-13/china-ord...