You're well intended here, but ignorant of how China operates. There is literally no way to enforce what you suggest.
I lived in China for many years.
>The government can mandate spy code be inserted and any data they want.
Essentially true for US government with US companies too
In fact it's more about ensuring that data is living inside their legislative boundaries.
The servers are not owned by China/EU/US states; they're still owned by the companies that operate them, just the data isn't exfiltrated to be outside the reach of the police.
Jumping from authoritarian state, to "all companies are subject to secrete control by the state", that is already a quantum leap. If you believe what Soviet Union's state controlled economy collapsed, because it's impossible for state to control that much of details of the economy, then you must be having a great faith in Mr. Xijinping being a literal Super human, who can control "all companies".
Then to "branches of the military"?! Now you are saying that Mr. Xi Jingping is just a puppet of the military?! And Chinese military is so brilliant that they not even developed a powerful military force second only to US & Russian, and meanwhile, they actually runs "all companies"?!
I just cannot see any logic in this short statement...
Edit:
Note that CCP does ensure private firms provide support for employees who are also party member to organize relevant activity.
State-owned company obviously has party committee, and except great control on personnel, like kind of a board.
China has discarded many of the Communist philosophies which held the USSR back. It is somewhat difficult to organize an economy when you intend to abolish money. And even harder when you refuse to optimize for profit! The PLA is under no such restrictions.
> And Chinese military is so brilliant that they not even developed a powerful military force second only to US & Russian, and meanwhile, they actually runs "all companies"?!
Then you haven't been paying attention, because yes, the People's Liberation Army owns and runs many businesses, with active duty officers serving as executives. State-owned enterprise is basically the only part of the whole Communism thing left.
I don't think anyone said Xi Jingping was a puppet other than you, but he remains president in part because the military supports the idea. Selling off their toys and firing officers from their side gigs risks losing that support.
And to be precise, "People's Liberation Army owns and runs many businesses" this is almost certainly a misunderstanding of the organizing structure.
Mr Deng Xiaoping deliberately not disallowing military involving business activities [1], in part it's because the military is starved from support and resources, and they need some form of self-sustaining to maintain the basic infrastructure, especially ensure the continuation of the talent development relevant to high-end military capability.
That was banned in Jiang Zeming's rule [2]. In part, just like the purge done by Xi, was because military with its own finanical sources will become a plitical risk to the party head.
Today, there isn't any military owned business, officially. There are state-owned military equipment companies and research institutes. But their relationship with military is not too different from Locke-martin & US government & US military. (I mean, US system works better, right? Then CCP will happy to copy...)
Of course, there could be grey areas, and exceptions. But it should be common sense, here I repeat, military personnel cannot have financial support in their own control, that threatens the political leaders' authority.
If you can name one "active duty officers serving as executives", I'll be very surprised...
[1] http://congressionalresearch.com/98-197/document.php?study=c... [2] http://www.globaltimes.cn/content/981596.shtml [3] https://www.businessinsider.com/xi-tells-chinas-military-to-...