couple of points I want to add:
1. The Chinese language name of PLAN is actually: People's Sea Force. PLAAF is People's Air Force. PLA is People's Liberation Force. There's absoutely no mention of Army in those chinese names. In the late 60s, China internally discussed to remove 'Liberation' and just call the army People's Land Force, but Zhu De(officially,not actually, the top commander of PLA) said to leave it until Taiwan is liberated.
2. "Small batches and quick runs", that's the publiclly declared modernisation strategy for PLAN since 1980s. In other words, it's exactly PLAN's strategy to only build small number of ships per class and try to produce more classes of ships. I think it's rather simple to understand that, if you are lagging behind by several generations, you need to cover those generations(classes of ships) in order to catch up. And you would be extremely foolish to produce large number of ships of some interim classes.
3. This particular strategy is of course not perfect, but I think it's appropriate for PLAN. Just compare what they have done in the last 20 years, I give them a much higher marks than PLAAF.
4. JiangJan shipyard has been moved out of ShangHai, evenif you have a blank cheque for them, they won't be able to deliver any large military ships. But their new shipyards are forming very quickly and the very first Production Line is for Military ships.
5. PLAN's long term planning actually is quite impressive. The current 052C(which is the old 052B) was first initiated in the late 80s, like a cut down Arleigh Burke. But they know the gap was too big and the only viable solution is to achieve the goal in phases and each stage only cover certain percentage of new techs.
6. Although china has quite a number of ship builders, there's only ONE military ship designer. All of the destroyer and frigates, 051, 052, 053, 054, they are from one designer institute. Dalian and JN only compete for the construction, not the design. They follow the design accepted by PLAN. (That's why all those critics on Dalian's ship design is not valid, those designs are not their works and not even chosen by them). The 051B(DDG167)'s hull is derived from 052. ) 052B/C's hull design is derived from 051B, although from outside they may look different. 051 and 052, although have different engine types, they are of the same family tree.
7. 051B(167)'s main design goal was to prove the so called medium general purpose hull design (6000-7000ton), the steam engine and the C4I system. They never dreamed of catching up with AB in one go.
8. The 2 Sovs bought in the 90s was a very important stepping stone. No matter how you evaluate their performance, the significance is no less than all the domestic classes.
9. Most of the important stuff in the second Sov deal (1.4bn USD) are not on those 2 ships. They were delievered long time ago. The steak has been eaten, although salad is still on the way.
10. Steam Engine is an important part of PLAN's road map, because nuclear power will play a more and more important role.
11. In the foreseable future, there won't be mass production of any destroyers, definitely not 052C, very slim chances of 052D. 052E may be.
12. The rumored engine problems were just from one or two guys' speculations. The detailed rumor was all 4 052B/C ships can't even move now. They used the auxilury power to sail 3000 kms back to ShangHai to get repaired. But the truth is 052B/C ships reached/reaching the one year warranty check period that's why they are going back to the ship yards one by one. Well, dealer paid free service, why not? According to one guy who actually did the warranty check of his company's product, 169's one year check result was the best he had seen.
13. That's not to say 052B/C work like charms. No, there are problems, but that's exactly the purpose of building small numbers of them. To make certain new tech stable so that 052D can verify other new techs.
14. All these small batches do create maintanence problems, and much higher unit prices. But, China has not reached most other established marine powers' stage yet. China will only follow the common sense when she significantlly narrowed down the gaps of technology and the gaps remain stable for a while. If she follows the common sense, she will not be able to catch up with leader, unless the leader makes huge mistakes continously, which you really shouldn't take that kind of things into your planning.