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That is not true at all.

There are state-owned companies, and there are private companies. Competition is intense.

The links of private companies with party officials is not caused by some cultural difference that makes boundaries fuzzy but by plain old unchecked power and corruption: The Party can make or break you so you need to stay on "friendly" terms with them.

This tends to happen everywhere there is no separation of powers and rule of law. In China it is simply perhaps better organised (or perhaps not).

A corollary is that being a Party member is useful for one's career. The Party also recruits as a way of keeping control.




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