Not true.
First to clarify some basics.
- In terms capacity and target orbit, LM-7 is to LM-2, LM-7A is to LM-3. LM-5 and 6 have nothing to do with replacing legacy rockets.
- LM-7 is designed at crew-grade. The only comparable rocket is LM-2F, nothing else. Using LM-7 for anything other than critical mission is a waste.
- LM-7G (to be officially LM-7A) had two launches, first failed, second succeeded. So LM-7A is far from ready to replace LM-3. It is not necessarily a problem either, because it is a low priority rocket. The very first launch was only a year ago.
- LM-7 is to be the dedicated mission critical LEO launcher, space station and future crew. LM-7A is for high mass and high orbit. None of them are intended to be replacement of LM-2 and 3.
- In reality only LM-8 (formally LM-722HO) is the real replacement of all LM-2 (except LM-2F) for low orbit, and LM-3 for most medium mass high orbit launches.
- Again, LM-8 has a low priority with the first launch just happened December 2020.
All these are telling that China is
in no hurry to remove cheap and effective old rocket. After all, why should China? Green is good and future but nothing advantage (in terms of payload for its tasks) if one has a well established procedure.
We must always keep in mind that, the first priority of China is to get the satellites to the desired orbit and possibly get men on the moon ON TIME, anything else is the second priority. Also note, this is not saying China is not phasing in the new rockets, it is just there is no desire to throw away something old that does perfect job.