China created their two-term limit rule (not just precedent, if I understand correctly) after the experience of Mao. Xi repealed it. That raises the kind of red flags that would be raised if Trump had the 22nd amendment repealed. It doesn't make a dictatorship, by itself, but it's a step along the road...
Now, if I understand correctly, local elections in China are much more real elections. But for the national leadership? No.
I'm not defending the Chinese system of government. I'm saying that criticisms of it should be accurate, and there are plenty of legitimate things to criticize. Calling it a dictatorship is an exaggeration, at least at this point in time.
Or Germany's not a dictatorship, because they never had term limits in the first place?
Even if you think it's not cause for concern, you have to admit it's at least a different situation with different parameters.