Actually the Song has very little in detail that is in relation to the Kilo. It can be perfected without using the Kilo as a technical reference. The same can be said of the Yuan. There are so many technical details that differ greatly between the Song/Yuan and the Kilo that any implied technological genetic relationship is not there. The entire 039 class has a lot more to do with Western sourced technologies, such as the German engines and the French inspired (the designs are indigenous) sonars. The only thing the Yuan has in common with the Kilo is the nose, but then a whole bunch of subs have similar nose designs too. Once you start looking at the limber holes, the sail design, the plane and fin configurations, the proportions, everything becomes seriously different. The AIP system for the Yuan runs on a Stirling principle, which you have to look to Sweden for inspiration. Russia's first attempt at AIP is based on fuel cell technology, which is German derived. Given China's connections to the Germans, its not likely China's fuel cell technologies would be inspired from the Russians.
The problem is that the Russians have run out of things to sell to the Chinese for the Chinese to model from. The Chinese actually went ahead on a number of things. For example, the Chinese have put their A-50 derived AWACS into operational service with electronic steering phase array radars and the Russians have not even completed their own yet with phase array.
Russia's most advanced SSK is the Amur/Lada. Its also the first one to have flank sonars, which only brings it to the same level as the Song already did years ago. Given the fact that the Yuan which is launched earlier is also bigger, the Yuan would have certain advantages in its design the Lada lacks. Not to mention the Lada has not finished its trials yet, but the Yuan has.
Another Russian inspired system where China has gone ahead is the HH-16. Although it seems inspired from the Shtil, the Chinese have already put them into VLS form and that into operational service, when the Russians don't even have a working system of the Shtil VLS.
And when you look at all the new PLAN ships now, they all look modern, clean and stealthy. The Sovs look like dinosaurs when set next to them. I seriously doubt that the Udaloys or a modernized Krivak like the Talwars have anything like the RCS of the Jiangkai II.
The Russians now have to look for gaps in the Chinese armament spectrum. Among such gaps are helicopters, hence the Mi-171 and the Kamovs are still good sales to China, though you can forget about the attack helicopters with China having the WZ-10. The Irbis is also interesting but towards the turn of the decade, I don't think China would be pursuing a PESA. Some of the Russian concepts are still interesting. The modernized Sunburn using Tarantuls, even though they look like dinosaurs compared to a Houbei, can make good use of China's large Sunburn inventory. The Project 20380 corvette for me is a model of what a PLAN corvette or littoral combat ship should be, although I think it's too expensive.
In many ways, Russia's nuclear submarines have a depth of more experience in design than China's, although the relationship between Chinese nuclear submarines and Russian are vastly overstated by analysts (they in fact have little in common other than broad features like double hulls). China can still learn from the Russians, but surprisingly, the Chinese are not approaching them, given that Rubin have said they were never approached by the Chinese for advisement. Well not surprisingly actually because in some ways, China's nuclear sub fleet is also meant as deterrent against Russia's nuclear forces; the Xia was a Cold War artifact that was meant against the Russians, not the US. And the Russians know that, which is why this region of technology is not open to sale. One particular area is where the Russians have semi-mastered Lead Bismuth cooled reactors, which they used on the Alfa class. This particular type of reactor has superior power to density output over conventional Pressurized Water Reactors.
Does not matter really. China is buying so much oil from Russia that Russia is becoming rich on that, and the Russians might as well use the petrodollars to beef up their own forces.