The current situation in china is that there are several tendencies within the party and the population in general. It goes from Neoliberals to Marxists and as such the struggle continues from within and from without. At the moment it seems like the domiant tendency is represented by Xi himself who is at bare minimum a marxist of some stripe. What China is will be decided in the next few decades by who wins the struggle between the different tendencies.

Now for your question is it capitalist or communist ? The best way to describe it is as a socialist state which has allowed for captalist mechanisms to once more grow within it. Again this is not a stable situation so the class struggle continues either the foundation gives and turns captalist or the captalist mechanisms yield and are replaced. The struggle is alive and well in China. Whether it ends in defeat or victory we must continue on comrade.