from reading your posts in the last couple of pages I believe that your arguments can be summarized in two main points. One, the state team is loosing manpowers (in your words bleeding). Two, there is a free competetion in China like in the US. IMO these two points are all opposite to reality.
Two main points I'm making.
1) Excessive variants complicate logistics. It doesn't matter if they use the same tooling and same engines, it's still better to focus on a smaller core of workhorse rockets. Especially in the current space race of everyone trying to make the next Falcon 9 and the race to the moon.
2) Waste of resources for rockets that are basically obsolete on before they can even make their maiden flight. Best case scenario, they launch a handful of times before retiring due to competition from reusable rockets. Worse case scenario CALT and SAST throw their weight around to have this rockets fly more, in expense of private companies reusable rocket designs. We already see this happening, one entire launchpad in Hainan commercial spaceport is solely reversed for the LM-8 launches, while a dozen private companies have to fight for the the mere 16 launches a year the other launchpad offers.
Anyway, even if China has a glut of trained rocket engineers, it's still wasteful and a sign of some really poor leadership to have them working on projects like this. China has a glut of manpower too, it's still a massive waste to hire millions of people to dig holes and fill them in endlessly. This isn't the 2000s anymore, everyone is gunning for a slice of the LEO pie and trying to make their mega-constellations and the current moon craze, this is not the time for pointless side projects. Money and resources should be concenrated into actually useful projects like the CZ-10 and CZ-9.
Is it bad for technology development? Not when the state teams are leaders.
Yes it's bad for technology development. What new technology does the LM-6C, LM-8G and LM-12 have? People keep telling me how they reuse engines and parts from previous rockets.
Private launchers get what are alotted to them by the state. Is it bad for technology development? Not when the state teams are leaders. The advancement of private sectors are blown out of propotion due to their publicity and people's fetish of SpaceX story.
Even if we ignore private companies, it's still stupid to try to develop an non-reusable rocket after 2016. There's a reason why the LM-9 has changed it's designs to a Starship clone. National space agencies have to compete with other countries after all. Even solely within China's national space agences, they still have to compete with other rockets like CZ-10A, which is at least that is designed to be reusable. Oh and of course the advancement of the private sector is gonna be neutered when the state wastes resources like this instead of giving money and resources to a company that actually is trying to make some new technology.
You guys are just giving excuses for why it's less bad, "Oh the tooling and engines are the same so it won't cause that much to develop compared to a totally new rocket", "China has an oversupply of rocket engineers so it doesn't matter if hundreds of people spent years of their life working on an obsolete rocket".
None of you can actually give an actual good reason why it makes sense for there to be an slightly upgraded version of the LM-6, the rocket that has flown like once a year for the last 6 years and whom there's a dozen other small lift rockets already in service meant to do the same job. Or why develop an upgraded version of the LM-8, which has flown 2 times in the last 4 years and when there's gonna to be a dozen more capable resuable medium lift rockets coming online in the next few years. Or why an entirely new rocket in the form of the LM-12, which like all new rockets, costs a bomb to develop and will have teething issues for a year or two, at which point they will be facing competition from both the state and private sector in the form of resuable rockets.
The base variant of the LM-6 and LM-8 can't even eat into the launch rates of the hypergolic rockets, a lightly upgraded version aren't gonna make a big splash in the new era of resuable rockets.