What economic system does China primarily operate under today?

China primarily operates under a hybrid economic system that incorporates elements of both capitalism and socialism. This approach is often referred to as "socialism with Chinese characteristics." Since the late 1970s, China's economic reforms have shifted the country away from a strictly socialist economic model towards one that allows for private ownership, foreign investment, and market forces to play a significant role in the economy.

In this hybrid model, the government maintains control over key sectors, such as energy and telecommunications, while also encouraging entrepreneurship and private enterprise in other areas. This blend of state-owned enterprises and a growing private sector reflects a pragmatic adaptation of socialist principles to a changing global economic environment, allowing China to experience rapid economic growth while attempting to maintain party control and social stability.

This complex economic framework distinguishes China from other economic systems, as it does not strictly adhere to either traditional socialism or free-market capitalism, but rather seeks to balance the two for national development objectives.