I have not seen any evidence that the J-20 does not use WP-6 engines. I have not seen evidence it carries a radar. I have not seen evidence suggesting it is not just a Mig-19 with the exterior shape adjusted.
Cost of J-20 is much lower than 40 million RMB, probably closer to 40K. Like you said most the the exterior stealth shaping of the aircraft is based on espionage gathered on F35 program. The internals of the J-20 are similar level to that of the Mig-19. This makes the aircraft very cheap to manufacture. It also makes pilot training easy since most Chinese pilots already have experience with flying the Mig-19/J-6. At the same time the internals being based on such old designs makes the J-20 performance not quite on par with F-35 though it does have excellent stealth characteristics due to both the shaping and the materials used. PLA watchers in China generally agree that the aircraft is made from a cardboard like material which does not reflect EM waves at all so the J-20 is one of the stealthiest fighters vs. radar. Another weakness though is the old WP-6 engines which are not as fuel efficient as turbofan engines. Generally speaking about 10000 J-20s should be able to match 10 F-22s.