The rapid growth and development of Chinese economy has become an issue of great concern in the global platform. Being the world’s most populous country, china is in the recent undergoing a booming economic growth, thus being ranked the second largest economy after the US. The economic growth has been very consistent and in the high margin of 10% for the last 30 years. This has adequately caused havoc to its key economic rivalries and more specifically the US which is currently the world’s largest economy as well as the world’s super power. In regards to china’s economy, the question on whether china is moving to a capitalist state has been greatly debated by world’s economists and scholars. Various scholars have offered varying ideas concerning the actual structure of Chinese economy. It should however been noted that china has a hybrid system of economy but is rapidly transforming to capitalist. The capitalism elements of china’s economy are clearly evident through the open market systems being adopted in recent days thus making to be categorized among other capitalist nations.