What we have is not capitalism. There is way too much gate-keeping regulation for it to be called capitalism.

Just like China does not have communism. They have too much free-market activity and private ownership for it to classify as such.

If you look at China and think "That's not communism", just be aware that they may also look at the west and think "That's not capitalism." Both are right. In fact both systems have converged.

China took the better aspects of communism and capitalism. We took some of the worst aspects of both... Except maybe free speech; but people are working hard on removing that one!

It makes sense; China came out of an era of extreme government control which has been reduced over time (compared to what it was before). In the west, government control has been on the way up and we can't even imagine how bad it can get.