Trust me, I'm not the one writing the policy.
The AH-1Z have been stored because the Army wants to cut freight and training costs. I don't think it'd be embargoed.
Third most important question is: If the Chinese radars and weapons perform as advertised or expected.
I'm no salesman for Vixen though, but i reckon if AMRAAMs, JHMCS, R-Darter are integrated on thunders, the resulting product will be an apt solution to the Rafale, Sukhoi problem.
PAC is developing substitute software to enable the integration of Western weapons like AMRAAM, R-Darter, JHMCS, Meteor or that Turkish BVRAAM that's under development.
In the end, its about diversification. PAF feels that the money it saved by developing Thunders is better spent on upgrading its capabilities.
That said. There are export customers with high end requirements, like Morocco, Malaysia, KSA, Azerbaijan etc. They might want the jet but not the Chinese weapons. They instead want western weapons onboard.