“State capitalism” as a term comes from western ultra-leftist anti-USSR critiques. Unsurprisingly, they don’t apply it to their own bourgeois dictatorships, who have massive mostly state-run or funded industries like the military and finance. Or take for instance the student loan or utility industries in the US, much of which are state-owned (at the federal or state level), yet extract huge profits from the people (and use it to fund police and military, the two largest budget items at both levels, also state-run).

What matters most, is who holds political power, and in whose interest is the economy run. In socialist countries like China, the USSR, Cuba, the DPRK, capitalists are not organized as a class; individually they are subservient to the state, and capital does not rise above the level of political authority. Private industry exists under the thumb of the communists party. Markets also are shaped to serve the people’s needs above all.

Contrast that with western bourgeois dictatorships: capital stands above political power, regardless of the type of election system, number of parties, or appearance of public debate or a free press.