> There is a huge amount of protectionism

Yes, like the 74% Steel tariff the EU imposes on China

Or how about solar panels from China which are hit with 65% tariffs unless they are sold at a minimum price (which is higher than average EU equivalents)?

The EU not being protectionist is a widely believed meme.

It’s kind of similar though in Europe. France, Italy, Germany and other European nations are very protectionist. Hell, entire EU is basically a protectionist conglomerate of nations so they can protect their economy against competition from emerging markets, Asia, South America etc. Chinese companies trying to have any meaningful presence in Europe also have to be in bed with local politicians and ruling class.

You are missing the point. Yes there is protectionism in the EU, but the claim was: China is very capitalistic compared to the EU. That is just false.

In the EU you can start your business wherever you are a legal resident, the regulations are a known quantity and essentially you just have to mind your own business. This is not so in mainland China, your applications can be arbitrarily denied, and if your business does too well, you will get a knock on the door asking if you are a "good comrade". All big businesses there are tied to the CCP one way or another.

Capitalism 2.0, now performs 10 times faster.

Capitalism has little to do with allowing foreign corporations to compete in your market

Correct, but the points in my second comment below also apply if you are Chinese. If you do business in China, even if you're a local, you're on a leash.