Two years ago, China's Ginni Coefficient was 0.41, which was even larger than US's 0.39. China's inequity problems are of multi-dimensions. The income gap between urban residents and rural residents, between East and West are becoming bigger. Economy mechanism China's economic reforms are aimed at transfering the central-planned economy to market economy. From the perspective of economic operation, China practically is not a communist country any more.
People have much more freedom to choose where they live and work, whom they work for.
Businesses are no longer been completely controled by the government. They make decision based on the market. The role of administrative measures faded. But unfortuntaly, an effective and complete law system has not yet been established. That is partially why the environmental pollution is so rampant.