"State capitalism," as you call it, is necessary in countries without significant industrial development. I don't agree with your characterization of it but I'm using your term to make sure we're talking about the same thing.

In the US we already have something much worse than so-called "state capitalism" in the form of Wal-Mart, Amazon, every shipping company, every weapons manufacturer, most of the tech sector, practically the entire aerospace industry, the list is virtually endless. None of it is controlled by the state, instead it controls the state. In China the capitalists get executed if they cross the DotP.

Say what you will about Xi Jinping and his approach to achieving socialism, but you can't accuse him of granting the ownership class too long a leash. If anything, he's giving them enough rope.