Under the revised company law, all firms in china are required to have an assembly of workers which represents them. For small firms, this assembly is made up of all employees. For larger firms, the assembly is elected.

So even private firms in China are not as private as you might think (especially since the government owns "golden shares", that is, shares either veto powers in many of them). Many firms also have CPC members on their boards.

That's also not accounting for the fact that the Chinese state owns all banks, land and resources in the country. It has an iron grip on the means of production and plans the growth and fall of industries.

To go even further, the Chinese state has no issue whipping capitalists who get out of line.