Well said friend. You are going to hit your head on the wall; bottom line too many vested interest and no purpose to serve and prevail. If they had a good sense of seperating industry from the military it would not have been at this stage. That is exactly what we did back since 50's under no circumstances SADF gets involved in the affairs of Armscor, Atlas, PMP etc ... instead each was left to innovate with a steady stream of graduates who took interests in various mechnical, electrical, aeronautical problem areas etc; SADF role was to provide the specifications of what they needed; in your case you cannot have the doctor also be a patient performing surgery - bad analogy but true.
The same issue is not only about basic rifles but across the board and if it was not 'Copy Mao', you can imagine the state of affairs then. You have been very fortunate to have China to essentially give you blueprints to make a screw. Furthermore every argument is about India or someone; as you rightfully put it, God has given you brains, use it and crave your own route.
Look at us, during the sanctions time, it was the best time in terms of where we took R&D in my country and it brought the country forward leaps and bounds across each and every sector - mining, agriculture, industrial - chemical industries, petrochemical - SASOL(80% of fuel in SA is derived locally from Coal using GTL - Fisher Thropp process) etc. The list is just endless if you get my drift; that also translated into our military support complex with Cheetah, Impalas, world pioneers in HMDs, secure comms, mine proof vehicles, hand guns, cannons, helicopters/gunships, aams, etc etc. During the cheetah program we needed to plumb them with IFR - back to the drawing board and a solution was found; it baffles me that you have the manpower and brainpower and cannot produce a local solution for handguns, or service rifle. At my university we produce some of the world's best gliders - jonkers just look it up - Prof Jonkers started this effort on his own - he had a will to do something. If there is a will there is a way is what I am saying.
Thanks... keep challenging the status quo. That is when there is a spark of change. But if society takes a backseat and says this is the way things are done, then your society is unfortunately doomed to remain in backwaters until perpetuity.