Wrong, they are definitely leaning right back into communism and a new cultural revolution. I live in Hong Kong, and see the news from over the border on a daily basis.
For decades they have indeed been completely capitalist, embraced western culture and capitalism, and raised millions out of poverty, creating a huge affluent middle class and a small number of oligarchs and extremely rich. When I arrived in HK in 2007 it was definitely communism in name only, and in practice, was completely capitalist.
Under Xi, this has changed, and is now changing faster than you think. They are cracking down on billionaires, big tech, education, you name it. By cracking down I mean arrests, government investigations, corruption allegations, and seizures.
They are openly threatening war against Taiwan in an unprecedented fashion. State newspapers (the only kind allowed) are pushing for military reunification, and railing against western culture, even popular Korean boy bands as "sissy boys", holding up "manly" Chinese soldiers as the ideal. They are accusing the US of biological warfare (yes, really, blaming the US for Covid as a deliberate attack).
They are now discussing common prosperity, universal basic wage, and other forms of wealth equalisation. Yes, this involves taking from the rich.
On the plus side, the move towards zero carbon is actually real. Its about the only good thing going on at the moment. As we speak, they have rolling electricity blackouts throughout China, because of high coal prices but also because of Beijing's directives to produce less and cut emissions.
Today's China is not the China of 10 or even 5 years ago. It has completely changed, and mostly for the worse.