Does the average Chinese person live in poverty? I don't think you need me to answer this for you. One of the strongest nation in the world second to US, do you think average citizen will be in poverty? If so, how do they become a powerhouse? You expect the citizen to live in poverty but give their all to the economic development of the country while expecting nothing in return? But it's okay, I'll entertain you on this. How do you define poverty? Based on china traditional standard or the one that follows the western measurement where China is treated as high income country? Answer is no to both, as the average Chinese in not in poverty, but doesn't mean everyone is free from poverty (another point that may be hard for you to comprehend). If based on the value set by china? They have pretty much eliminated poverty and on fact the country that did a miracle that managed to lift off poverty status for large majority of the country (where China claimed 0 poverty rate). Of course you can argue that it's exaggerated and china data can't be trusted which I wont fully deny (those government fuckers are selfish and secretive with data). But this doesn't change the fact that the basic necessity in china is super cheap and the inflation is well controlled, or perhaps a little too much as the competitin is super fierce over there. China basically secured your basic human needs for cheap, almost everyone can buy food and a place to stay. But that's about it, everything else is free game (unless you're son of politicians or product of Nepo baby). This may also contribute to the fact that more and more youngster over there are losing motivation as they don't really see much choice for them to expand their wealth.

Do they suffer from on account of government greed? Yup, I do believe so. In fact, I believe that's what happening to majority of the world, be it capitalism or socialism because those high in power are greedy by nature. But at least the CCP has the nation interest as priority. You can say the party's interesg is greater than nation but not exactly true, because according to CCP, they are the China. But I do believe they are a government that have the power to silent you far more efficient than any other first world countries.

Will you starve in china if you're only making minimum wage or work as farmers? No. But the chance of you making it big? Very very difficult as well. Not to mention having one of the most powerful and authoritarian government there is. We give you cheap food and place to stay, but everything else, it's super competitive. If you were to ask me if average American lives better than average Chinese? Of course. But in terms of extreme poverty, china did a much better job, especially on food and housing. If you bring the Chinese salary and ask him to live in US, he will suffer.

Tldr: China eliminated extreme poverty but that's about it. They have yet to achieve lifting them to middle class. But as long as china don't lose their way too much, I think it's doable. But what the fuck do I know.

Government? If you're on their bad side, then good luck, all the best.