China is state capitalism. Capitalism isn’t losing. The West is losing because China is using state funds to buy up successful Western companies, and as their new owner, has the ability to force them to do China’s bidding.

Meanwhile the West is completely barred from buying a majority stake in any successful Chinese company and even if it could would not be taking it over on behalf of serving the state.

The problem is China plays by its own rules and those rules are heavily stacked against every other nation. That was fine when they were making junk for Walmart; it’s not so fine when it’s highly sophisticated electronics and software (that can do whatever China wants it to in the West) … and to add insult to injury it’s often based on stolen Western technology (since us idiots decided to put the factories that manufacturer the designs there).