You are missing the point. Yes there is protectionism in the EU, but the claim was: China is very capitalistic compared to the EU. That is just false.

In the EU you can start your business wherever you are a legal resident, the regulations are a known quantity and essentially you just have to mind your own business. This is not so in mainland China, your applications can be arbitrarily denied, and if your business does too well, you will get a knock on the door asking if you are a "good comrade". All big businesses there are tied to the CCP one way or another.