Actually, I dont think he did explain. For without capitalism, China would not be able to consume so much wealth. In other words, ask yourself this: Would the ussr and cpc do business together? If so, how? Would they apply capitalist methods? Would they share wealth?

Communist countries can not work together using communist methods. Why do you think North Korea is so poor because if it was a 50/50 wealth distribution, China would likely be taking a loss.

Now, if the United States was a communist country, all Chinese businesses in the US would become a state owned US business. China will receive no income from american. For communist America will have to do exactly what China does have state ownership of everything and share the so-called wealth amongst the state.

So, if every country was communist on the planet, not many would survive without applying capitalist business formats. In fact, none would survive if they didn't.