Socialism the govt only lets you do what they say you can do. Anything else is wrong.
Capitalism (controlled) is where you can do anything you want, unless the govt says you can't by some law.
The difference is in how old the govt is. As you can see, at some point they cross sides. Any law the socialists pass allow a bit more wiggle room, just by nature. Any law passed by capitalist/democracy is more & more restrictive.
China will have to allow more & more freedoms - more laws - as time goes on if they want an educated, working poulation. At some point, they will end up more capitalistic than the USA is.
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