The state performs the role of the capitalist for the large firms. They also have SEZs with foreign investment, they have a huge black market, and they also have many self-employed people. Quite a few of their businesses are state-run in writing but actually ran as private businesses. They also suffer from massive corruption all around.

Capitalism is not just markets and private ownership, the fundamental element in capitalism is commodity production. This is one of the key findings of Marx. It is a Stalinist revisionism that you can have "socialist commodity production".