Yes but those people getting rich for the most part are connected or have connections to government officials. Hence of course the people in charge will make sure they, their friends, and family get rich. But I am sure if you count the numbers, based on their population of 1 billion people, its probably a very small percent. And if you have a problem with that, they will happily send soldiers to your house to show you the error of your ways.
Not sure if this is very accurate. As of a year ago, China had 106 billionaires, almost 400,000 millionaires, and 5,000 with over 30m (all U.S. dollars obviously). It has a long way to go to reach the U.S.'s levels but it's not too far off proportionaly to GDP figures. A simplified outlook might suggest that if China maintains growth rates even 75% of current ones and the U.S. manages to hold its growth rate at 3% (currently at 11 and 0 respectively), it will only be another 15-25 or so years before the figures align. Of course the U.S. only has one fourth of China's population and will likely have closer to 1/6 when/if that time comes. But considering the wealth we started out with compared to China when China started industrializing in the early 1980's, that's startling.
I'll also disagree with the suggestion that a government connection is a requirement for success. While many officials do allocate funds for government projects (as in that's their job, decides who gets the money), the U.S. does the exact same thing. Unlike over here, curruption ends with execution instead of a few pages in a tabloid about a bridge to no where in alaska.
I say this with decent confidence because I personally know a few gentleman who allocate funds for large governmental institutions there (specifically the zhejiang province and Shanghai (it's own province)). The majority of them are highly distinguished professors and researchers who work extremely hard, not some aristocrats making their friend's rich. There are so many levels you have to get approval through and so many people monitoring the progress it's suicide at a remotely high level to perform outright curruption right now.
As for the original question, yes it's communist. However, since the early 80's the government has embraced capitalism. It decided that in order to maintain power and control over it's broad population it would need strong economic growth. As time went on, this reinforced itself. While some communist ideas are relatively obvious to outsiders, in general the country operates similar to any other capitalist nation economically. An exception would be that tipping is not very common (if everyone is doing their part, why would you need a 'performance bonus' for activities that are not beyond what your job requires?), which I find quite refreshing and quickly got used to.
HK is China, but the better way to structure the relationship is that China is the head corporation and HK is a subsiderary. Like InBev buying out bud but letting bud do it's thing. In several decades the relationship's structure will be back up at the 'bargaining table' so to speak.
Taiwan and China are seperate countries at this point for all intents and purposes.
As to the last poster, the trade deficit we have with China (I assume that's what you are referring to) is completely our fault. They have eagerly bought up our debt and put the terms of trade in their favor exactly as they are supposed to. As for giving money to our enemies, I think your worry is misguided. The vast majority of our current deficit and dollars net flowing out of the country go to purchase black gold. At least China actually makes things and competes, most of our dollars go towards nothing but commodity lottery winners who will eventually have their days.