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China is Socialist, in that it maintains a Dictatorship of the Proletariat, and is progressing towards full Socialization of the economy. The Dengist liberal reforms occured after Mao's Great Leap Forward backfired, Mao put too strong of an emphasis on the idea of Class Struggle. As Engels puts it in Principles of Communism:
Xu Hongzhi and Qin Xuan elaborate on the decisions made in implementing liberal reforms as a part of "Socialism with Chinese Characteristics," specifically with respect to errors made under Mao in trying to "skip ahead to Communism:"
Whether or not the CPC has their bourgeois class reigned in or not, whether the Bourgeoisie in China is in control or the people via the CPC, these are genuine concerns that we can have, but the central idea that "having Capitalism means the entire system within context is Capitalist" is wrong. What matters is trajectory and control.
too many threads to keep track of. so if anything gets mixed up ...
regarding engels: yes its a process, i agree. that didnt transfer for me into what we call the phase (or state) that the country was in. i am rethinking this right now, as it makes sense to keep the expressed goal (communism) not only in mind while going through (the troubles) socialism and power struggles. since i never saw the next step i never made that connection. still not sure about it, but i am willing to learn.
regarding china i have a different perception than you. coming back to trajectory matters and control over the direction a country and its society is taking it the communist idea doesnt fit the china of the last 20 years.
the "great leap" criticism is all fine. they are taking a step back and dont try to jump ahead. that, for me, doesnt manifest itself in the economic doctrine (yeah, economic system and political system are not the same, i know). in the case of china the economic impact of the production and trade with the rest of the world seems to be so all consuming that its hard for me not to see it as a capitalist system. in control are a political class, most of them akin to oligarchs (and the US equivalent) in wealth and power. the trajectory seems to be there just to be able to say something positive to the people while they die for the capital (in the original sense). that remindes me of every capitalist country i know.
an example came to me:
a startup has an idea, tries to realize it into a product. gets money from investors but isnt profitable yet. the cant seem to finish the protoype and start to run into walls. i wouldnt listen to these people regarding the protoype or sound business advice just because they set out to change something for the better.
I think you need to do more research on the trends, structures, and systems in place in China. The idea of "oligarchs" running everything is ill-founded, the Chinese Democratic system requires politicians to work their way up from the very bottom and continue to be elected, as an example. Safety nets are expanding and large, public infrastructure projects are happening without being privitized.
This is what I mean. Communism isn't an "idea to be realized," but a process of development along historical modes of production. Mao tried to create Communism now through fiat, something impossible. The characteristics of developed Capitalism allow Socialism to emerge from it, ie Lower-Stage Communism.
How familiar are you with Dialectical and Historical Materialism?