Yes. Democracy isn't about choosing between parties, but having substantive input on direction that results in the will of the people being carried out. This is true of China, policy is typically driven from the bottom-up, a process called "whole process people's democracy." This is expressed, as an example, through Five Year Plans that are the result of mass polling and suggestions among the populace. The CPC has over 100 million members in a country of 1.4 billion.

The state isn't a class in and of itself, it can only serve as representative of a class. In the PRC, that class is the working class. The communists beat the nationalists in the Chinese Civil War, and from that point on the working class has been in control.