Arguing that capitalism being allowed in China makes it capitalist would be akin to arguing that having social services such as public healthcare makes Canada communist.
I'd totally argue that having public healthcare, publicly-owned infrastructure, makes Canada or the US socialist lol. Technically the "workers" don't directly own the particular publicly-owned means of production, but they definitely do have a say in how it is run through their vote.
Anyway...
Given that you say China is socialist (which seems insane given it is literally an authoritarian state: the workers don't own the means of production, the state does!), my original question:
"Can you point to an example of a socialist country (by your definition of socialist) that is superior in a certain industry innovation-wise compared to a capitalist (by your definition of capitalist) country?"
Seems kind of stupid given that China is definitely leading in certain industries compared to more "capitalist" (US, EU, etc.) nations. (Mainly manufacturing industries).
So I'll ask a different question.
Given all the pro-china arguments you've listed. Would you want to live there if you got the chance? And if so/if not, why?
"usually", "almost always" It seems like there is also generally no simple solution to the complex problem of finding solutions!