State Capitalism and Crony capitalism is not free market Capitalism. But sure, word Capitalism is used in a wide spectrum for smearing. However, Chinese calls themselves `Socialist Market Economy `
A quote from Mises: "The socialist movement takes great pains to circulate frequently new labels for its ideally constructed state. Each worn-out label is replaced by another which raises hopes of an ultimate solution of the insoluble basic problem of Socialism—until it becomes obvious that nothing has been changed but the name. The most recent slogan is "State Capitalism." It is not commonly realized that this covers nothing more than what used to be called Planned Economy and State Socialism, and that State Capitalism, Planned Economy, and State Socialism diverge only in non-essentials from the "classic" ideal of egalitarian Socialism."
That is the problem with the term. AFAIK Original term 'Capitalism' was a Marxist smear. However, Classical Liberals, accepts the term, but they probably would like a term like `Propertyism` or such. Again, Ludvig Von Mises says
"The capitalist system was termed "capitalism" not by a friend of the system, but by an individual who considered it to be the worst of all historical systems, the greatest evil that had ever befallen mankind. That man was Karl Marx. Nevertheless, there is no reason to reject Marx's term, because it describes clearly the source of the great social improvements brought about by capitalism. Those improvements are the result of capital accumulation; they are based on the fact that people, as a rule, do not consume everything they have produced, that they save — and invest — a part of it."
Other terms State Capitalism and Crony Capitalism are also coined by Socialists but essentially they are not accepted as a positive term by Classical Liberals because they are based on conflicting ideas of Capitalism such as protectionism and state monopolies.
that is why I understand the actual free market Capitalism when the term is used.
But you don't have "free market capitalism" anywhere in the world. Especially not in the US, between the amount of lobbying and the pouring of billions of dollars into the military-industrial complex every year in what effectively amounts to hidden subsidies, or bank bailouts. It's just a question of degree.
One billion Chinese beg to differ.