Tax breaks, operations of state owned industry, other incentives etc are guided by five year plans implemented by a party bureaucracy.

"You can't do X" is a much different experience from "you can do X, but you need to spend a year and thousands of man-hours of paperwork applying for permission to do it".

In China, if the five-year plan prioritizes something, businesses will be up and running in months. In France, if the French parliament enacts a law prioritizing something, businesses still have to fight individual departments or local governments that have their own ideas about how they should regulate it.

Don't confuse bureaucracy for authoritarianism.

How is any of that a bureaucratic burden for domestic private companies in China?