The poverty reduction comes from the Chinese "Communist" Party adopting capitalism.

This is a pretty glib way of putting it. The chinese system isn't really capitalism, at least not of the "free market" type. Like I'm not saying that communism is responsible for the improvements in poverty, but I am saying that a significantly non-capitalist system has resulted in big changes. My point is that we often talk like anything that is not a pure capitalism is bound to grind to a halt and be catastrophically bad, but that isn't true.