There are no peasants in China anymore. Agriculture has been near entirely industrialized and proletarianized, there are no feudal lords any longer. The leader of China is the proletariat. The proletariat establishes and maintains dominance over the existing capitalist class through public ownership of the commanding heights of the economy, and the communist party which itself is a mass proletarian cadre organization. The worker state has dominance over the less powerful private sector, and enforces this. The PLA is also subject directly to the CPC, not the state itself.

The capitalists in China do not have power over the CPC. Not only are they barred from the top levels of administration, but corruption and subversion are harshly punished. The very fact that China has capitalists means the CPC cannot allow them to form a coherent political bloc by which they can wage counterrevolution and reverse socialism.

In other words, I insist on very basic facts from a Marxist-Leninist perspective, that the state in China is run by the CPC, which itself is a mass proletarian party, and that the core aspects of the economy are owned collectively. It is from this basis that I understand China as socialist.

As for the idea that the workers should simply decide to dissolve their own power, this is not how the withering of the state works. The state is specifically the superstructure by which the base of society, the mode of production and distribution, is maintained in favor of the ruling class. Since the ruling class of China is the proletariat, it does not need to abolish its own power. What it needs to do is gradually collectivize the economy as the private sector itself grows to national levels and markets cease to play a progressive role in socializing production. This is how the proletariat abolishes itself as a class, and the oppressive elements of administration for maintaining proletarian rule fade.

What will not fade is any and all hierarchy. Marxism is not anti-hierarchy, this is an anarchist conception. Marxists seek to abolish class society, which does not mean eliminating all administration. Just as a principal and a teacher are both proletarian, so too are proletarian factory workers and state administrators. Hierarchy is not the problem, class is. There is no "abolish the state, implement communism" button. Instead, the material relations of production are shaped primarily by the level of development of the forces of production.

I really do think reading Marx could help explain a lot of these concepts like class, the socialist state, and transformation from capitalism to communism. If you want suggestions, I can make some.