Yes there is a privileged class. But that is the case everywhere. And it is most probably very corrupt too. However, what the China system has and the western systems do not have, is the absolute power of the party to set the policy and execute it. This includes making the powerful people (oligarchs) obey, or removing them from power if needed. It breeds infighting and turnover which is good for finding the most capable people. This seems to be impossible in the west; the wealthy powerful people are not removable from their power, irrespective of who is in control of the government.
That's only true to a point. In the west, people in power don't have (in theory) legal powers or privileges outside their office above the general public - you know "That all men are created equal...".
Just because there is turnover doesn't mean that the most capable people are in power. It could be that the most deceitful or powerful people are in power.
You can even see some of this in the worker union in China. It's basically a sham. It's run by the state and the safety protections are basically non-existent.
I think there is a correlation between the most powerful (politically) and the most capable (being able to make the right decisions for the country) but I agree that is not a universally accepted argument.
You seem to be familiar with China, how can a naive outsider learn about how the China really works inside?
