Interesting discussion.
The CCP and thus China prioritises internal stability at all costs. So while changing economic models may well be exciting and beneficial in the long term, just like in NZ it will and is leaving many people behind.
Without political freedoms, people rely on the promise of a better life via increasing property values, stock prices, employment prospects etc. This is why the government has always bailed out any major failures. Xi probably should let Evergrande fail but will he take the risk?
This is also why you see so many laughable attacks on foreigners from Chinese diplomats like the Australia nonsense Balance proudly talks about. They are for internal consumption as it gives people someone other than the CCP to blame. Obviously history tells us this strategy is also full of risks!
For one it causes individuals and countries to take a harder line on China and decrease their ability to provide that increasing standard of living. Amazon's crackdown on Chinese sellers with fake reviews is a small example.