I mean, the term "State Capitalism" was originally invented by the USSR to describe their economy. So China isn't really doing anything that MLs are unfamiliar with. Plus, it's all part of the historical determinism that MLs vaguely ascribe to -- China/Russia has to first develop a capitalist economy in order to then become socialist.
Personally I think it's all a load of horseshit but you never know, maybe China will be fully socialist by 2050 or whatever