>This term was how 'true leftists' would separate themselves from the Soviet Union and 'old communism'.

Soviet communism is different from Maoist communism, which is different from Juche. Every political model has variations in terms of ideology and execution, and they do evolve over time. It is correct to differentiate between Chinese communism and Soviet communism just as it's correct to distinguish between European and US capitalism.

>Or as Chomsky says, USA is also state capitalist, so could be anyone!

I think an argument can be made that the US is headed in China's direction in that regard, yes.

Rigid political taxonomies tend to lead to thought-terminating cliches, which is why they get deployed in propaganda. Reality tends to be more subtle. Socialism can exist within capitalism, and capitalism within socialism. Communism can be authoritarian, and it can be so egalitarian that it collapses (as happened with many communes in the 1960s.) Communists can be ideological enemies in the same way as Christians, Muslims and Jews, despite ostensibly having the same origin. And plenty of self-described free market capitalists would love for America to have free economic zones like Shenzhen.

Whatever China is, it does seem to be more capitalist than communist to me.