That's not exactly what I am referring to. Obviously, having 2 competing companies allow them to progress faster in both j10 and flankers. That was something they had for a long time.
What I see differently is how they approached the induction of flankers vs how other countries did, namely India. Everything they did was something that you'd only expect to see in China. When they chose to license manufacture, they did not look to license manufacture the most advanced variant available. The technology on Su-30MKI is clearly more advanced. However, they needed the capability sooner. They wanted to get access to flanker assembly sooner, so that they can raise the level of SAC sooner and indigenize sooner. They had confidence that they'd be able to fully indigenize a modern 4th generation aircraft. Similarly, they didn't get license production of AL-31, but they set up the largest MRO plant for it outside of Russia. It was capable of pretty much everything other than producing new AL-31.
When they were procuring MKK, they knew it didn't have advanced electronics or sophisticated missiles. However, they were confident that better domestic options were coming along, so they ordered it for immediate capabilities anyhow. I'm sure back in their mind, MKK was picked due to their desire for a more capable flanker platform better suited for long range and multi-role missions. That seems to have been the objective based on people involved in the project. They didn't think they could make platform improvements as well as Sukhoi, so they went for the best platform available at the earliest point. With all that experience on it, they were able to develop J-16 based on all the experiences they've. Now, they have the most capable flanker aircraft in service anywhere. J-16 will also have application long after J-20 joins service in large numbers. If they had waited for the best Russian electronics before purchasing MKK, they would have never got the chance to develop J-16.
