No, I agree with you actually. Had capitalism come in to rural China, the literacy would have stayed down and they probably would have ended up in an even less equitable economic situation. Communism does have some good social priorities that set it apart from capitalism.
But:
I'll round up some sources later but in terms of Industrial development, the USSR, which was waaaay behind the rest of the world at the time, advanced a good 100 years between 1917 and 1953 or so.
Came at a huge social cost. Inadequate housing, totally inferior goods, a myopic focus on military and heavy industry, corruption, mismanagement...all of which was felt by the people the centralized economy was supposed to be serving. And when you factor in the political parts of it, the purges, the terrors, the witch hunts, the shifting winds of ComIntern politics...there was a very large cost involved in achieving what it did. Granted, most of that was paid for post WWII....but the framework for it started much earlier.
Granted, communist ideology at the time felt like they had to catch up in the militarization race, and that the Cold War atmosphere redirected a lot of communism's efforts in the wrong direction....so we'll never really know how they would have faired without a military giant breathing down their collective necks. But...based on how Eastern Europe faired under communism, I'm not convinced it would have been exceptionally better.
And if you want a grim lesson in the brutality of communist revolutionary movements....look no farther than China. What makes China particularly scary is that there was no Stalin initially. Most of the savagery occurred in the streets at the hands of zealots.