Serial foreign entrepreneur in China here. Your points are so incorrect I wonder where do you get this information that you feel stating it as fact is acceptable?

I feel compelled to dispel these because it's dangerous and unconstructive for the community to have such completely false information presented as fact. I might actually share a detailed post on this in the near future since I feel people here completely misunderstand China regularly.

As a foreigner, China is truly off-limits

No, it's not. Visas are not easy but they are easier than the US. As a founder, you get infinite renewal on long term business visas instantly, with low capital requirements and essentially no other requirements. I would say that China is very friendly and more welcoming to foreign investment than many other countries in measurable ways. In addition, corruption is very much under control and the business environment is overall pretty advanced. It's not all rainbows and unicorns: documentation and process can be very frustrating, but it's fundamentally an open and welcoming system. Once you're on the books, it's awesome. Digital tax, 100% mobile payment penetration, automated banking APIs, etc. Having been through the experience of applying for a US work visa and many types of Chinese visas, both for myself and employees, I am speaking from direct experience here and therefore feel qualified to comment.

In China, nearly all innovative industries are completely legally restricted from foreigner owned businesses

Absolutely, completely untrue. Restrictions exist only on particular industries (chiefly media, telco and some sectors of finance). Pretty much everything is open. China really likes innovation and key cities such as Shenzhen are actively seeking to bring in more foreigners, with an international entrepreneurial recruitment drive to bring startups to the city underway right now.

Likewise, in China, most non-innovative industries require you to setup a company with foreigners as minority shareholders, so control is never in foreign hands.

Absolutely untrue. You can set up a wholly foreign owned enterprise in almost any sector.

In China, all foreign private investment is also highly restricted with all transactions needing government approval.

Corporate setup requires government stamping, but I have never heard of a rejection of investment. There is an approval process on international corporate transfers and some restrictions on minimum domestic capital maintenance (largely for asset seizure in case of domestic legal concerns) but this is cleared if a company is wound down and there are so many workarounds in place that one could see these processes being streamlined in the near future.

Large foreign-owned businesses operating in China seemingly always lose to local Chinese companies, not on merit, but by red tape or shady government practices: Google, Facebook, Amazon, Uber, and others

The political reality is that it is not in China's national interest to allow the creation of vast databases of its citizens and their movements by foreign companies for storage on foreign ground. As with any market, it is important to understand where the limits are when doing business in China. However, the good news is the government is more likely to come knock on your door and let you know if they are getting uncomfortable with how things are going and offer you an opportunity to correct than outright shut down your business.

My personal experience with Amazon in China was that they had copy-pasted foreign process to China with little thought, and that seriously undermined their offering to the point where, even as a foreign business owner with some international infrastructure requirements, it made no sense to deal with them.

Even small foreign-owned businesses in China get weeded out through dubious enforcement

Food is my industry so I can probably add some context here. While I hadn't heard of this case, it's true to say that Shanghai has been particularly strong on cracking down on food safety related issues recently. This is partly due to the shake-up of food safety regulation which occurred recently at the national level and the evolving enforcement framework trickling down as a result. Frankly some areas are currently inadequately detailed, and it is unclear whether the case mentioned was due to an honest mistake, an upset former employee, or shady business, or some combination all three.

As a foreigner, if you marry a Chinese national, getting a Chinese work visa actually becomes harder

I am on my second marriage to a Chinese national and my second business. The Chinese visa system is not designed for people who cross categories - ie. doing business, also married. That's OK, it just means you have to apply for one category or another. The truth is, it is actually easier for founders to get long term visas than for people married to Chinese citizens. The visa rules are constantly evolving, in short it was very easy pre-2008, now it is a hassle but getting better. Unless you have visited Turkey or Syria, in which case it is very hard.

Sure, China is "pro-trade" in the sense of wanting to making money off the status quo trade imbalance.

Every country's government wants economic fortune.