It's important to remember that Pakistan's industrial/technology planning and military planning happens from the same palm. In other words, if for some reason urgency becomes a factor (i.e., a military issue), then it'll basically shape the development side.
The last CAS, ACM Sohail Aman, started with the goal of developing an FGFA alone, but he entertained the idea of collaboration and partnerships (with Turkey and China). The current CAS, ACM Mujahid Anwar Khan, had liked the idea of developing an FGFA alone, but he said that as long as the design is ITAR-free, they'll be happy to roll into a consortium. Basically, AZM is heading towards a consortium direction.
In other words, to save on time and cost, Pakistan is not going to manage the bulk of the design work or even much of the technology development. It'll help with production (by taking up a sizable % of the workshare, and ideally, contribute to the supply chain of all primary partners).
I wouldn't say it's a step backwards from the JF-17. Rather, it's a lateral step or continuation of what PAC is kind of doing already. If anything, if the PAF can access China's supply channel by manufacturing stabilizer, fuselage, etc, PAC will end up with a lot more work on its hands.
Basically, the PAF has to choose between:
1. Expediency, but probably no major workshare output (China)
2. Major workshare output, but a slow and higher-risk project (Turkey)
However, while China would say no to placing some of its military supply chain in Pakistan, it may entertain the idea for commercial aircraft. If, by choosing the FC-31, Pakistan can get a 100% price offset through commercial aircraft, helicopters, etc, then it could be a good choice.
Yes, it won't drive the developmental track directly, but if China agrees to $10 b in aviation purchases from Pakistan over 15-20 years, we can channel that offset into investment, encouraging the private sector, etc.
Those steps will help our economy, and we'll actually end up with companies that can drive valuable R&D.
@JamD @Syed1. @The Accountant @airomerix