communism

The other day my friends and I were discussing governments. And a thought crossed our minds - why has communism failed?
Well, here's why I think communism has failed.
Communism basically tells its people "Work and give everything to us. We'll disburse the food and shelter equally to all". This sounds very idealistic. Only that it doesn't work.
When Joe is told he'd be given bread not on the amount of work they do, but on the amount of work everyone does, Joe would think that he's gonna get the bread anyways, so why work more. He'd bank on his brothers and cousins to work and get the free bread.
Joes are all around. So less and less people work lesser and lesser. There's no productivity. There's no innovation. The entire system crumbles.
This precisely is the reason why a quota system within India has failed. The "backward classes" know that they have a government job waiting for them - so why bother to study?
Man works on incentives. This world has progressed so far because man was always incentivised. He was always awarded for the work he did.
However, communism in China has largely succeeded. Can someone please explain why?