Tolerated by whom? Those companies aren't owned by the public, or by the US government. The owners/executives of those companies tolerated the practice, because they believed that they could still be profitable and that the risk was acceptable. And profit they
did. Do you think they care one bit about ideology?
I find it rather strange that so many people throw around the "tolerate in order for China for open up" rhetoric, as if companies invest in China for ideological reasons. Ironically, by forcing those western companies to not do business with China, you are infringing on those companies' freedom to choose for themselves, and violating liberal values.
Furthermore, as someone who came from China, that "China did not open up" is completely false. In the past 30 years, China opened up immensely. In the 70s, Chinese could not choose what to wear, could not choose to travel abroad, people could randomly be caught on suspicion of colluding with "the enemy". All of that has changed. Even the latter: the practice of being "reported by your neighbor for suspicious activities" no longer happens, the Cultural Revolution madness is over. Heck, even "not allowed to criticize the government" is no longer true: there are official channels for publishing constructive criticism (emphasis on constructive), and government officials post official replies in the public, and the criticism is listened to without getting you into trouble (the caveat being that you are not allowed to instigate mass protests, or call for overthrow of the government). Sure, it's not equivalent to western democracies, but it did change for the better even if there's still room for improvement. But for some reason, many western people completely ignore this fact and buy into the rhetoric that "China did not open up". It's not even a small fact, it's a huge boulder staring in your face, and people don't see it.