If this was a laser designator, here are the problems I see with it.
1) if you wanted to repackage a laser for target designating why package it in a assault rifle shape? I mean a DMR rifle would be better suited. It has a bipod for stability and is configured for optics.
additionally why would you replicate the muzzle? I mean its a laser all you need is a lenses. And why would you burden a soldier with a second system that looks like his primary weapon? I mean 0200 hours he runs into.trouble grabs the first thing he feels that feels.like his weapon only to lase for a air strike that is not coming.
2) size. We have seen laser designation devices from the Pla before. They were kinda big. Normally if something is more advanced it gets smaller. This would be bigger. Objectively if you wanted to issue a designation device and have the user aim like a weapon then what you would want would be the size of a large submachine pistol with a stock. So the user can pull stabilize and aim. You don't need to replicate a full long gun all you need is something easy to use easy to carry. Best case might be a little bigger then the CF 05 or maybe the grenade launcher on a qbz 95. Which brings up another.option why not just mount it to the primary arm and lase using a button you mount to the trigger guard?
really the only option that makes sense is that the PLA uses these as laser simulation weapons or opfor training.