Exactly how is China with its' unequal distribution of wealth and lack of a vibrant middle class a capitalist country? I think the word imperialism would more accurately describe China.
The US is becoming more imperialist as well through Keynesian/Marxist control of individual wealth. But, there's no reason to bastardize capitalism with incorrectly using the terminology.
To survive as a capitalist country, the US must encourage competition through anti trust enforcement and protection of individual rights of ownership which results in true productivity advances.