The economy you described in your question is called a market economy. It has free markets and the production of goods and services are determined by the consumers.
Because he sees Japanese as disease from the outside but the communist is a disease from the inside and need to destroy before becoming an unstoppable force. Also the communist is a blocking of his plan to unify China in one flag to defeat the Japanese forces in the country.
William Randolph Hearst and Joseph Pulitzer :)
