China is less Socialistic and more capitalistic than Canada. China's main problem is it is still a totalitarian state with no rights for individuals.
More accurately, they've graduated from communism to national socialism (the term "Nazi" was a contraction of "National Socialist German Workers Party"). The people who are wealthy necessarily must have ties to the ruling communist elite, and over time the wealthy class and the communist elite will merge into oligarchy.
This merging is necessary -- you only "own" property if you have the means of defending it (either personally, or thru the use of the state's police powers). If the ruling elite cannot arbitrarily confiscate your property, then that means there are limits on their power. This would lead to the wealthy being in a position to have a say in how things are run. The ruling old men cannot tolerate that, however much some degree of liberalization would benefit their economy