China has been ruled by the Communist Party since the end of the Chinese Civil War, which concluded following the end of WWII. At the beginning of World War II, China was invented by the Japanese empire. The United States defeated the Japanese empire, and World War 2 ended in 1945. As soon as World War II ended, the Chinese Civil War resumed, with the Communist Party eventually ejecting the Nationalist party from the mainland regions of China. The Nationalist Party founded Taiwan, and the Communist Party maintained control over China. Even though the Communist Party continues to rule China, the country is more socialist and communist today. The Marxist framework of the Communist party has largely been replaced by a socialist market economy.
China is considered a socialist economy because the government still has a tremendous amount of control over private enterprises. There are private companies that operate in China, and not everything is owned by the government; however, with a single party in power, the government is able to change the direction of the economy significantly with the stroke of a pen. Therefore, there are a lot of companies that are unsure of exactly what will happen in the future because they are at the mercy of the government. Because of this outlook, most people consider China to be a socialist economy, not a capitalist one.
In a socialist government, there is an economic and political system in place under which the means of production in the country are owned by the public. This means that the government is responsible for production, and consumer prices are generally controlled by the government itself. Prices are adjusted to better meet the needs of the people, but the system is prone to corruption if the government does not have the best interests of the people at heart. In contrast, capitalism is an economic system where all means of production are privately owned. The price of goods and services is largely dictated by the direction of the economy, and supply and demand are responsible for the changes in prices.
There are differences between socialism and communism as well, even though there are a lot of people who believe they are the same thing. In communism, there is an authoritarian power in charge. The state is responsible for owning just about everything, and the ruling party makes all of the decisions. In socialism, even though the vast majority of the economy is still owned by the government, people participate in the economy equally because they are responsible for putting leaders in charge. In a socialist economy, the people can simply vote the government out of power and replace them with representatives they want. Therefore, the people still have significant control of the economy and socialism, whereas in communism they do not.
Bangladesh, Eritrea, Guyana, India, Nepal, Nicaragua, Portugal, Sri Lanka, and Tanzania are socialist countries.