Even worse though: Most totalitarian countries fit that description, too.
Consider that Marx and Engels in the Communist Manifesto spent a whole chapter tearing into other socialist ideologies, ranging from ideologies they saw as reactionary and anti-democratic and even feudal, to utopian systems that were basically anarchist.
Socialist ideologies have historically spanned the spectrum from extreme libertarianism (the term libertarian was first used for a political system by a French anarcho-communist that was so anti-authority he criticised Proudhon - a prominent early anarchist - for not going far enough) to systems that basically argued for technocratic feudal systems with welfare.
Using the term without specifying more is meaningless if you are talking about a specific ideology or system rather than generally about systems with certain shared characteristics.
For the record, though, I agree with you that the definition in the comment you reply to doesn't make sense - it would exclude many prominent socialist ideologies.
And would view many other countries as socialist, if they have things like national medical insurance and free college tuition. Except China. China for some reason is viewed as comfortably capitalist, despite the pictures of Chairman Mao on the currency and at Tienanmen Square. And except Russia, whose authoritarianism is admired.
Talking perception here, not reality. The perception of people who used to be a marginal group of extremists but now have many people in positions of Governor, house of representatives, etc.
And unfortunately they now have a real shot at the White House in the personage of their tribal Duce (a pathological egomaniac whose politics are unclear and span all ends of the spectrum within any given time period).
For the purposes of western companies with ties to China, they have capitalism - after all, allowing child labor in sweat shops is very capitalistic.
On the other hand the state controls a majority of enterprise assets even though the number of enterprises fully owned by the state is around 30%. And they also impose their will on privately owned companies, with the market not being free.
Also, don't confuse capitalism with democracy ;-)
One describes the methods of organization of the state and its economy; the other describes the goals of the government of the state.
France is currently governed by a majority led by the Socialist party.