The larger star symbolizes the CCP, and the four smaller stars symbolize the four social classes of China's New Democracy mentioned in Mao Zedong's "On the People's Democratic Dictatorship": the working class, the peasantry, the urban petite bourgeoisie, and the national bourgeoisie.

Socialism is when proletariat and bourgeois work together hand-in-hand to build up and bring wealth to The Nation™ to the benefit of The People™! It's called dialectics buddy, read theory!