That argument is also undercut by the wealth that has flowed into China, from slave labor to organ harvesting to door to door abortions under “1 child” policies, making a moral argument while empowering brutes is a non starter.
China is assuredly NOT a capitalist society in that it is a corrupt one party state without the rule of law and the security of property and persons. Hence the evils that you describe.
I grant that your confusion on this point is understandable. China has embraced free markets and entrepreneurship and thus enjoys capitalism’s benefits of material progress and a reduction of poverty.