Chinese were smart: They know Pakistan would not be able to manufacture the high end items like avionics, or engines. Not for anytime soon. So this way, Chinese will stand to earn more than their Pakistan counterparts because the most expensive items are the engines, avionics, and weapons.
Pakistan will receive TOT to build up to 50% of the airframe. (in previous version of aircraft in PAF)
Pakistan does not get TOT for the avionics / radar.
Pakistan does not get TOT for weapon systems.
Pakistan does not get TOT for the engine.
That is why Pakistan is looking to the West for these sub-systems. (Last time)
Now this time discussing block II... i am still confuzed ... PAF even not fully satisfied and still few ABCD stuff left in block I how they will start Block II .... from where PAF get funds ???? Pakistan economy is not stable... this Block II i think totally Chinese made with Chinese system.... no share of Pakistan in BLOCK II (if its really exists).