How does China's economy operate today?

China's economy today operates under a system often referred to as "socialism with Chinese characteristics." This system incorporates elements of both socialism and capitalism. While the government retains significant control over key sectors, a substantial portion of the economy is driven by market forces. As a result, prices for goods and services in many sectors are influenced by supply and demand, similar to a capitalist economy.

This shift began in the late 20th century when China moved away from a purely command economy. The introduction of market reforms has led to increased efficiency and growth, allowing private enterprises and consumer demand to play a crucial role in the economy. Consequently, many products are priced based on market conditions rather than fixed by the government, which reflects the characteristics of a market-based economy.

Understanding the dynamics of China's current economic framework is essential, as it illustrates the complexities and adaptations within their approach. The other options describe a more centrally planned or controlled system which does not accurately depict the current multifaceted nature of the Chinese economy.