Yes, despite what China may want you to think they are capitalist. Democracy =/= capitalism, you can have an authoritarian state with a capitalist economy.
Also, even if China was a command economy that doesn't mean they too couldn't cause pollution. Its just that "the tragedy of the commons" is a specifically market economy problem.
Soviets were proud of economic damage and the strength of human being putting rivers to flow in other direction for the benefit of a soviet man. All sort of talk about protecting the nature was by people brainwashed by the western ideals and propaganda.
I consider China to be a communist country that understands capitalism and uses it to its advantage.
A while capitalism encourages the tragedy of the commons and communism has the potential of solving it, it doesn't mean it will. Communism is a better system in theory, but from experience, it doesn't work as well in practice.
The entire idea of communism is meant to solve this problem, it is even in the name.
And the solution is essentially using force. Someone will guard the cookie jar and make sure you don't take more than one. Workers are supposed to form a collective to enforce these rules.
For example, you don't just launch a satellite, you tell the state you want to launch a satellite and if some council decides it will have a positive impact on society, you will be paid you a fixed salary to build it. This way, you can take a step back and think about the whole process, from start to finish and not just the money making part, there are no competitors to undercut you.
At least that's theory. In practice it is very vulnerable to corruption and it doesn't incentivizes productive work.
