Well, I think capitalism is the preferred economic system as it's been the one that's raised China out of poverty and into international prominence. The political situation is more complicated. China's system has alternatively been described as "authoritarian capitalism," which is instructive. We in the West have a simpler term for this, which is fascism. In fact, capitalism can thrive under fascist political models, as was demonstrated in Germany in the 1930s and early 1940s. The top-down command and control governance mentality is largely identical. Some have argued that fascism serves the interests of capital much more efficiently than does democracy. I'm not sure that reinforcing this model will be good for the Chinese in the long run, but as a friend of mine who is Chinese tells me many Chinese people equate democracy with chaos, which is an outcome to be avoided at any cost.