[Confusion]

  China reformed its communistic system and embraced
  capitalism toward the late 70s.

As someone claiming to be countering something 'shockingly untrue, intellectually dishonest and utterly asinine': take a look in a mirror please. China has never 'embraced capitalism toward the late 70s'. That's a PR ploy. On the one hand, the trivial 'free internal markets' have always been there, as much as they have always existed in Cuba. A complete lack of internal markets has never been implemented anywhere, except for perhaps North-Korea.

On the other hand, for a vast majority of purposes, there are still no free internal markets in China. You can't just start a company manufacturing bicycles and expect to sell them: the government still tightly controls who is allowed to do what and when. Whether you call it a communism, an oligarchy or even a dictatorship doesn't matter: that's not embracing capitalism. At most they've acknowledged how capitalism effectively rules the international markets and gone effectively along with the flow. Internally, there's a far cry from free markets.

Ascribing China's growth to 'embracing capitalist principles' is just wishful thinking from people that think capitalism is the source of all good things. If anything is responsible, it's the fact that a well-informed leadership with a strong vision can pull a country from the dust, like no president of a democratic country would ever have the mandate to do. That is what has happened in China, capitalism be damned. Touting 'capitalism' has just made them look good enough in the eyes of the West to make it that much easier to pull it off.