First of all, China is not a Communist country...as we think of it. It is very open to the outside world and the businesses are private -- directly against the definition of a Communist Country.
What do you expect from the fastest developing country in (recent) history? Almost 2B people there, the Government is able to support about 20 cities, everything in between is outside of their domain.
I travel on business to China quite often (this year 6 times) and I travel to Shanghai, Beijing, Shenzhen, Guangzhou, Nanjing, Xian. But even when you drive from Shenzhen to Guangzhou (two-hour drive) you see the reality of China and the life between the big cities.
Actually, Shanghai is a miracle to me -- far ahead of NYC for example. It has between 24 and 28 million people with the surrounding areas. However, if you go about 8 miles outside from the heart of the city you notice the poverty and corruption... But that is very normal for the country of that size, rapid growth and amount of people they have...