Things are not so simple, as I see it. I don't see the actual China as
socialist or communist, nor I see them returning to a socialist path. This
will become clear later, though this is a very very rough explanation.
Things do not really get cheap because they are more abundantly produced
(now I am putting my point of view in this whole thing, which is not really
standard) because money (gold or precious metals) or value in circulation
(I am not counting credit/debt here) also decreases because labor employed
in industry (the source) decreases accordingly. So, there is less and less
money to expend, credit, instead, expands, and thus debt, because it just
cannot be payed. Sectors of economy become glut and bubbles are created.

Pegging money to something of value is also not good. Eventually, it is not
enough to keep track of the quantity of things produced, so stagflation
happens. Just printing money is also not good, it leads to hyperinflation.
A socialist system, ideally, do not have such problems because money is
used as grants or as a mean of accounting. This is possible because there
is no accumulation of money in the hand of few. But, the world is not
ideal, simply because all countries need to trade and the world is nearly
all capitalist. So, what happens is that there is a need to accumulate
reserves, which generally leads to stagnation. Both USSR and USA suffered
from this problem starting in the 70s, but USA could alleviate the problem
with the Volker shock, that is, letting credit abound, multiplying
reserves. Not so much USSR, given its ideological compromise. Straying off
this path led to its doom. Many countries of East Europe acquired large
debts with IMF, which led them, in a way or another, to bankrupt. Look for
the total debt of countries (not just public only, money flows indent of
ownership)you will see that they all of them explode starting around 1980.
Soon, shit will hit the fan.

China is different case though. It could save itself by crippling the
economic conditions on the countryside and making people start to cities,
where they could provide cheap work for industries. So, Chinese leadership
deliberately sabotaged the most basic epithets of socialism in order to
stay in power.  They have been trying to improve the conditions on the
countryside in the last few years, though, in order to avoid rebellions in
the city. Wages raised and so unemployment. The labor is not so cheap
anymore, it's getting close to Mexico, officially.

There has been some attempt, though not conscious, in setting something
similar to precious metal. Crypt currencies somehow are equivalent to mine,
where value comes labor employed through maintenance of servers or that
employed in the electric system. But, the value it seems, I am not sure if
it is regulated by the market, unlike with precious metals. There is a
certain scarcity factor that is introduce to make mining more difficult, I
cannot, right now see this as really equivalent to a real mine running out.
In any case, fluctuations make it not suitable for the people in general to
trade. Like with precious metal, there should be some kind of "bank notes",
or some similar thing to avoid fluctuations.

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