You could very well be right. It would interesting to know when exactly he painted this piece, i.e. what political climate. I did a fast google but couldn't find anything, but more than likely it was after Viet Nam.
What you're surmising could be right, although it seems to me that the balloons are almost identical in size and I would say, are rising together. The slight tipping of the gold/imperialism balloon higher than the other might easily be for composition's sake. The eagle on the communism balloons could signify America's attempt to hold back communism... but you could also say, the eagles seem to be stamped onto the balloon, like a slogan. Considering the climate of the time (China in economic shambles, US refusing immigration, etc...) maybe the artist was saying that America in some ways allowed Communism to flourish?
Other interesting aspects of the painting... the other imperialism/golden dragon balloon with festive blue ribbon mixed with the communism balloons...
... and, the fact that the naive family is all dressed in light clothing. In fact, the light focusses around the mother and up the pillar behind her. Contrasting that is the dark clad, slightly "snake oilish" balloon seller on the other side... along with another child, also dressed in very dark clothes, denoting that he somehow belongs to/with the balloon seller?
PS. The hiney pics you post are a lot easier to look at than eyes being gouged out.
