China as "honorary" capitalist country

I mentioned in a recent post a comment by John Kenneth Galbraith about China. It was in his 1992 book, The Culture of Contentment. In talking about the US Cold War ideology and the justification for massive military expenditures, he writes:

The natural focus of concern was the Soviet Union and its once seemingly stalwart satellites in Eastern Europe. Fear of the not inconsiderable competence of the Soviets in military technology and production provided the main pillar of support for American military spending. However, the alarm was geographically comprehensive. It supported expenditure and military action against such improbable threats as those from Angola, Afghanistan, Ethiopia, Grenada, El Salvador, Nicaragua, Laos, Cambodia and, massively, tragically and at great cost, from Vietnam. From being considered a source of fear and concern, only Communist China was, from the early 1970s on, exempt. Turning against the Soviet Union and forgiven for its earlier role in Korea and Vietnam, it became an honorary bastion of democracy and free enterprise, which, later repressive actions notwithstanding, it rather substantially remains. [my emphasis]