Yes, that's right.
Also, I don't think that the idea that you can "take it off when you don't need it" is quite right. Body armor costs upward of 1400$ each. Equipped on over a million soldiers, that's 1.4 billion dollars. Not a small expenditure. In addition, vests have a shelf life of only a few years, so that money will have to be re-spent every few years. The idea that it's "better to have it and not need it, than to need it and not have it" is not enough to justify that kind of expenditure.
well, better start cutting on those Audis
money is not of the question, the government is bleeding bazillions on some projects, and you don't need to equip all 1 million troops with them, at least those elites in the Northern GAs, showing that PLA do equip and train its frontline troops with body armors
rather than cost, i think the main reason is priority like cn_habs said, and that the PLA is not expecting to fight a high intensity conflict any time soon in the near future