State capitalism has become a popular term in the west as to what China's economic policy is, but in fact, it is overly simplistic. Private Chinese companies have contributed to the most job creation and growth in China, and the leading Internet companies (Tencent, Alibaba, ByteDance) are all privately-owned Chinese companies. In the case of ByteDance, the founder is not even a member of the Party. This makes the Trump administration China policy even dumber than it already is; their aim should be to peel off ByteDance from the Party, instead of lumping it all together with the Party.

The issue is that all Chinese companies have to support Party Central policy, regardless of whether they are SOEs or private Chinese companies. That was the trap ByteDance and Huawei got caught in.

My prediction is that the next generation of Chinese entrepreneurs have learned their lesson, and will set up their company HQs outside the PRC, because they know that if they don't, they cannot become truly international companies.