I think freedom is a continuum. Some things are regulated even in the West so for example you need permission to open a new hospital.

Sure, but on this continuum capitalism is a lot more free than socialism.

By definition, in socialism, I can't start and/or grow a business, and I'm not free to do with it as I please. Some socialist societies let people have small business, but the state comes in and takes it once it gets too big.