Instead of staying, 'government influence always wins' (which is both what you're implying and what is being observed here), you've replaced 'government influence' with the word capitalism. Nonsense where words have meaning.
It's like playing poker with a really shitty Teller at the table, with a whipped and abused Penn standing to the side, handing him aces every game. It's getting old. China is not playing on the level. They should be shut out from civilized society until our unless they change their culture.
It is abundantly clear that they will continue to act in bad faith, knowing that there are no consequences for lying, cheating, and stealing.
Where is the "first they came for the Uyghurs" outrage? Where is the relentless criticism of child labor, abuses of women's rights, or anti nuclear proliferation crowd?
They just straight up jacked ARM technology for themselves. The West can conduct business in good faith because we have a set of shared values and expectations of cooperation. We play by the same rules, and can trust each other to the extent that laws and treaties protect us. China's presence in the global markets completely undermines that trust and the underpinnings of cooperation. They are above any law and wield that fact like a club. The experiment has failed, its time to shut them out completely. Stop enabling.