At the theoretical level, the names China Army or PRC Army imply that the armed force belongs to the state, and the state, is the instrument of the ruling elite. While the PLA, was originally conceived as a "people's army", an army that belongs to the people, and serves the interest of the people.
Therefore, a name change would imply that the ownership of the military has been taken away from the people, and transfered to the ruling elite, it will undermine the legitimacy of the communist party rule.
Therefore, a name change would imply that the ownership of the military has been taken away from the people, and transfered to the ruling elite, it will undermine the legitimacy of the communist party rule.