My sister-in-law lives there. She is actually at my house now as she flew in to visit because she is a teacher and the kids are out of school right now. I will get her take on everything chinese related. From my understanding, they are more free market in business than we are, but outside of that their freedoms are heavily restricted. They definitely don't have freedom of religion and they are definitely a surveillance state. It is a very dangerous country because of government intrusion and not a place that I care to ever live.
Honestly, China is probably one of the better examples of why limited government is better.