y4mi didn't say that capitalism was the system that had created the greatest scale, merely that capitalism was the system that had worked best at scale. So China's system can create a bigger economy than the USA? Fine. (And the new, non-Maoist system has lifted something like a quarter of a billion people out of poverty, which is an amazing achievement.) But can it create a per-capita income similar to the USA's? So far, no, not even close. So China is not actually a refutation of y4mi's point, and won't be for quite some time.
Why can't China's system produce a better per-person outcome than the USA's? Well, China was starting from a much lower point after western domination, then Japanese invasion, then civil war, and then Mao's blundering and oppression. But apart from that, China's government has too much power. This gives too many opportunities for corruption, and corruption drains the life out of the economy. (And yes, the USA's government has too much power, too. The USA (I think) less corrupt than China, but the corruption is there, at least in the form of people using the government's power to hinder competitors. More direct forms are starting to show up, too, or at least we're starting to hear about them more than we used to.
What system really works? A government strong enough that it can prevent people abusing the market (collusion, fraud, unsafe products), but not so strong that it's easy or useful to use the government as a mechanism of abuse, and not so cumbersome that it gets much in the way of normal (non-fraudulent, non-collusion, safe products) business.
Why can't China's system produce a better per-person outcome than the USA's? Well, China was starting from a much lower point after western domination, then Japanese invasion, then civil war, and then Mao's blundering and oppression. But apart from that, China's government has too much power. This gives too many opportunities for corruption, and corruption drains the life out of the economy. (And yes, the USA's government has too much power, too. The USA (I think) less corrupt than China, but the corruption is there, at least in the form of people using the government's power to hinder competitors. More direct forms are starting to show up, too, or at least we're starting to hear about them more than we used to.
What system really works? A government strong enough that it can prevent people abusing the market (collusion, fraud, unsafe products), but not so strong that it's easy or useful to use the government as a mechanism of abuse, and not so cumbersome that it gets much in the way of normal (non-fraudulent, non-collusion, safe products) business.