This is just basically what many people have been talking about. The CCP have no check and balance and very little input from the public. If America can act badly even with these restraints, just imagine what an unhindered "emperor" would do (Xi purged the party and removed term limits).
Honestly I'd assume both.
Both countries operate in this very weird sphere where capitalism is allowed, but only if you're willing to work with the government in question. If not, you're going to be arrested (on some random crime) and removed from power. Then you'd be replaced with someone who is willing to work within the confines of the government.
Horrible, but that's the system they've built over there.
That bit about Jack Ma retiring and selling his company to "anonymous" people actually went past my radar but now that I've heard of it, it's totally something the CCP would do. I agree, capitalism only exist to service the Party's goals.
This is why I don't believe the ideology would ever work, the "equality" is just lip service. Once people get into a position of power, they'll hang on to it. And in most cases, their lives do depend on it. I find it unsustainable.