China is becoming a major player in tech, definitely (Xiaomi, Huawei, not to mention the solar-energy sector) though their international penetration excepting Huawei is a bit underwhelming.
But I simply cannot agree with you in that China is a market economy. Banks don't get to lend to whoever they want in China (or choose not to lend, really), and in fact have to stick to quotas of some sort. Every major company in China has to have a Board made of Communist Party members - recently, Sinopec sold off a portion of its more profitable businesses, defying all economic rationale simply because the CCP said so. Then you also have the fact that a lot of the Chinese companies are controlled by Politburo members (Li Peng's family controls electricity, Wen Jiabao controls jewelry) so there's a very strong element of distortion there. China will never be a free market economy, because the Communist Party is not one that will cede control over the country freely.
Re: User29, there's a difference between a 'peaceful system' and a 'viable system'. Short-term peace doesn't mean that the system can sustain itself forever. Most people would agree that, domestically, Nazi Germany was comparatively peaceful but the German state was so hollowed out by Hitler's structures that it's quite unlikely that the state could have peacefully transitioned had he died a natural death. For the CCP, we already saw how troublesome its succession was, with Xi Jinping almost getting assassinated by Bo Xilai and necessitating a country-wide hunt for supporters. At some point succession troubles in the CCP will tip the Party over the top - and that is assuming that the CCP will forever be able to hold the ship of state steady through all crises, which smacks of blind faith and might not even be true at this point, considering the failure of their Xinjiang, Hong Kong, Taiwan, economic (debatable I concede), and international policy.