Even if AvRID/PAC successfully design, develop, integrate, test, and manufacture AZM, they'll still buy the engines, semi-conductors, and other industrial-scale components from China. Basically, the Chinese will benefit the most from the project (financially), and still influence our supply line.
It's the reality, but nothing to be ashamed of. Every military project orbits around one of five big powers: USA, UK/Germany, France, Russia, and China. Ours will rotate around China until such a time we (along with Turkey, Indonesia, Malaysia, Morocco, Qatar, etc) reach a level of industrialization where we can collaborate like Europe.
The best way forward is to seek the fighter and the technology, but do it separately.
For the fighter aircraft, work on AZM in close cooperation with China. For the technology, work with Turkey, but know it will take 20, 30, or even 40 years to get it right before we can make an indigenous fighter from end-to-end.