I have no problem with China behaving in their national interests. Why shouldn't they? They do it because they can. If Malyasia could do it, they would. If Korea could do it, they would. The problem is the structure of the competition. Olympic sports are NATIONAL competitions. As such, each country should only be limited to one entry per competition. Brazil doesn't get to enter 3 or 4 soccer teams, Canada doesn't get to enter 2 or 3 hockey teams and the US doesn't get to Enter 3 or so Basketball teams.

As for this nonsense about Communism and Capitalism. Interesting theoretical discussion but there is no capitalist country left (Hong Kong is perhaps the closest off the top of my head) and I can't think of any existing Communist country (perhaps Cuba). For the most part you just have various degrees of Fascism.