China is hardly a communist country today. They have adapted their economy since the days of Mao towards what would be considered a quasi-capitalistic system. While they are still a dictatorship, led by the "communist party of China," this is more of a misnomer than anything.
They are by no means a shining example of free market economics, though. Their artificially low exchange rate keeps their exports at unnaturally low prices, and allows them to beat out competition.
Further, this is just covering the economics of it. China has an atrocious human rights record, and no matter what you want to call the current government and system, it isn't working in this area at all.