The jf-17 export potential will always be limited by the politicized nature of arms procurement. The Egyptians settled on peace with Israel and were beneficiaries of a large force of f-16s, the Israelis themselves were gifted a few after they agreed to stay out of the first gulf war; Pakistan inducted f-16s as the Americans needed an ally against the Soviet invasion of Afghanistan. The Saudis spent a comical amount of money on US arms after the first Gulf War. In short, procurement of arms by nations often mirror their diplomatic standing in the wider realm of geopolitics. The collapse of the Soviet Union allowed the West to consolidate their standing among lesser nations, while simultaneously gaining a monopoly over the armament needs of said nations. The Chinese find themselves trying to fight against what is now institutionalized bias against their arms industry.
If the jf-17 is to have any chance of success as an exportable entity, it is then limited to nations that aren't aligned with the Western powers. The nations the Americans and the like have not found important enough or have active hostility towards. Both types of nations present Pakistan and by extension China with a potentially major marketing problem. In the same vain that Soviet/Russian aircraft have horrific reputations, supplying the jf-17 to a nation with nary the capabilities and experience present in the PAF, could completely destroy any further export potential and the domestic confidence in the fighter. PAF does not have the kind of money or resources required to setup a whole new doctrine and training for another nation's air force, leaving the jf-17 at the mercy of pilots that may have no business flying it and maintenance crews with not the slightest clue on how to maintain it long term. Doing business with nations hostile to the US would put China directly in competition with the Americans. A place China is not, at least today, equipped to handle. Nations that don't necessarily have the kind of funds to procure Western aircraft or diplomatic clout to benefit from American aid are the kind of target market that can do more damage than good to the cause of the jf-17. A nation that is short on money could easily sell of a jf-17 to benefit from a monetary perspective or an even greater diplomatic and political one. Pakistan's adversaries are not short on funds and could easily procure the one trump card we have left. The unexposed jf-17 is an advantage in a potential war that will be far greater than most people realize, since its exact capabilities are unknown to all those who are a threat to the PAF. Selling it to nations that might easily pawn it off to the highest bidder puts, what is sensitive technology by Pakistani standards, in the hands of our biggest adversaries.
The potential market of the jf-17 is then by default, limited to nations with limited resources and even less experience with this kind of aircraft. Traditional allies of Pakistan are too far in the American camp that Pakistani itself comfortably once called home, and they will keep feeding the American arms industry with billions in order to appease the US. For those who do not believe China will have a big say in where the jf-17 can and cannot be sold to must realize the Communist nature of the nation's government means no corporation is technically private. This may have been a joint venture that didn't include the Chinese Airforce, but the owner of the Chinese portion of the investment is the same government that runs the air force. The export potential of this project is a reflection of China's place in the global arena, which is hardly impressive at this point in time. It may be smarter for the PAF to oppose Chinese efforts to export it and enjoy this aircraft and keep it's capabilities to themselves. An unpopular opinion I'm sure, but the military industry has never conformed to the laws of economics so profit and loss in dollar terms isn't relevant. Maintaining strategic surprise with an unexposed fighter is profit enough.
