No, that is a common misconception. Most (~85%) companies in China are completely private and just pay taxes. Most of the super large companies (like fortune 500) are partially or completely state owned though. They have embraced aspects of capitalism the last decade, but with checks to ensure that huge corporations don't control society like in the US.

Being a closed authoritarian regime, where every company is under party control, they have to do what the party says. Which can easily be something secretly nefarious

From the FCC.

DJI drones and the surveillance technology on board these systems are collecting vast amounts of sensitive data—everything from high-resolution images of critical infrastructure to facial recognition technology and remote sensors that can measure an individual’s body temperature and heart rate,” Commissioner Carr stated. “Security researchers have also found that DJI’s software applications collect large quantities of personal information from the operator’s smartphone that could be exploited by Beijing. Indeed, one former Pentagon official stated that ‘we know that a lot of the information is sent back to China from’ DJI drones.

“DJI’s collection of vast troves of sensitive data isespecially troubling given that China’s National Intelligence Law grants the Chinese government the power to compel DJI to assist it in espionage activities. In fact, the Commerce Department placed DJI on its Entity List last year, citing DJI’s role in Communist China’s surveillance and abuse of Uyghurs in Xinjiang. Add to this information the widespread use of DJI drones by various state and local public safety and law enforcement agencies as well as news reports that the U.S. Secret Service and FBI recently bought DJI drones, and the need for quick action on the potential national security threat is clear.