You have inadvertently hit the nail on the head. They just call it socialism. There are several shades of poverty, for different reasons. One shade is due to the fact that a lot of services, like welfare, education, and medical, are only available to you in your hometown, probably the one you were born in. But if you have migrated from bf nowhere Gansu province to a big city where the jobs are, you rid yourself of that safety net. It's hard/costly to change this hometown registration so most don't and become quasi undocumented workers in their own country. And they are the ones who work insane hours in shitty and dangerous work conditions and it's then who will look for anything to save a yuan.

Not necessarily true. You're guaranteed work and a minimum wage and if you're disabled government will take care of you. Also basic healthcare is basically free. Things like electricity and telecom are subsidized too. But no, it's definitely not a socialist utopia. It's oppressive and censored and restrictive. Hyper consumerism is the norm.