The above is where we disagree. The current regime will permit only the amount of capitalism it requires to stay in power. China is still a communist state based on Maoism which is somewhat different from the the Soviet Union style communism, based on Leninism.
Since when is it possible to practice communism in the shadow of capitalism? The two are completely incompatible with one another. There has never been, and never will be, a state in which rampant, market capitalism is practiced with government sanction, and in which communism is accepted as the preferred system of government.
What you have in China is something much closer to National Socialism than it is communism, where the private businessman is allowed to conduct (or stay in) business, and to even make as good a living as he possibly can, but the means by which he makes that living "belong" to the State. He is, in effect, a manager of a state-governed concern, even if he actually owns the concern itself.
So long as the state gets it's cut, no one seems to care.
Where it differs from national socialism and communism, however, is in the belief that an economy can be planned independant of external market forces.