Socialism with Chinese characteristics is socialism, not capitalism. You can tell from the fact that life continues to dramatically improve for the masses of the people. If the capitalist class was in charge, there would still be widespread hunger, homelessness and illiteracy.
Deng Xiaoping made this point very effectively:
Ours is an economically backward country with a population of one billion. If we took the capitalist road, a small number of people in certain areas would quickly grow rich, and a new bourgeoisie would emerge along with a number of millionaires — all of these people amounting to less than one per cent of the population — while the overwhelming majority of the people would remain in poverty, scarcely able to feed and clothe themselves. Only the socialist system can eradicate povertyChina can only take the socialist road, 1987