A planned economy would be some government committee deciding what specific startups and how many of them should be started up in any give year, and no one else can create a startup.
You have it backwards, the government decides which startups (by industry) will be funded and the individuals get drawn to those industries. There is a private VC market in China, but it's a rounding error compared to state investment.
The AI boom in China is directly from Xi himself setting it as a national priority. That means you will keep getting money to develop AI and AI adjacent tech regardless of how inefficient you are. There are no investors nagging for a return or wanting a path to profit.
This is why there are solar panel factories in China pumping out panels without slowing down, even though the market is saturated and they are losing money on each panel. You don't stop or slow until the leader says to.
no it would not be...where is this definition from?
Two distinct words night be useful to distinguish between planned without any market feedback and heavy industrial policy like we see in China now. In fact the CCP recently voiced their impatience with Cuba refusing to introduce market-oriented reforms.