Because J20 and J31/35 combo have covered the full spectrum of China’s 5th gen fighter requirements. A 3rd one will hardly be able to provide anything new. This would be the same fate for FC31, had CAC won.
Spectrum:
J-20 is a heavy, 35t class, 2 engine air superiority/multirole fighter. Check.
J-XY, as of now, is heavy, 30t class, 2 engine naval multirole fighter. Check.
J-XY‘ - notional heavy, 30t class(we don't know!), 2 engine PLA multirole(?) fighter.
I.e. we can summarize it as a (1)35t heavy stealth platform and (2)30t heavy stealth platform. No, 30t aircraft ain't medium.
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PLAAF also operates, as of 2020s (tactical manned only):
J-7 family fighters - 10t class, 1 engine day fighter. Outdated. Being replaced by J-10.
J-8 family interceptors - 20t class, 2 engine air superiority/interceptor. Outdated. To be gradually replaced by J-20.
JH-7 fighter bombers - heavy, 30t class, 2 engine strike fighter. In service; may indeed be a nice niche to be replaced by J-XY(PLA)
J-10 family fighters - 20t class, 1 engine air superiority/multirole fighter. In active production.
J-11 family fighters(+su-27/30/35) - heavy, 35t class, 2 engine air superiority fighter. In active production. To be partially displaced by J-16/20?
J-16 family multirole fighters - heavy, 35t class, 2 engine multirole fighter/support platform. In active prodiction.
i.e. we can grossly summarize platforms (summing up outdated and partially replaced) as follows:
-light, single engine, payloads-centric, multirole (niche 1).
-heavy, twin engine, stealth, air superiority (niche 2)
-heavy, twin engine, payloads-centric, multirole (niche 3)
-heavy, twin engine, strike (niche 4).
Niche 1 is a child of necessity, a cost-saving measure - because it does the same things the others do - but worse. Or, in other way - if done right, and producer is very careful with costs control - it in one platform will do 4/5 jobs of others for 2/3 the price of any of them, i.e. will allow for significantly more operational airframes for a given level of spending. J-XY(PLA) flatly doesn't match this description.
Niche 4 is really the only one where J-XY fits for the PLAAF. And it's honestly the most questionable one - precisely because niche 2 and 3 prima facie can do the very same job. And probably will need to anyways - is definitely a very capable outsized payloads carrier - this isn't capability one can skip.
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PLANAF will operate, as of 2020s:
J-15 family fighters - heavy, 35t class, 2 engine naval multirole fighter. In active production.
J-XY family fighters - heavy, 30t class, 2 engine stealth naval multirole fighter. In development.
Can be summed up as:
-heavy, twin engine, payloads-centric, multirole (niche 1)
-heavy, twin engine, stealth, multirole (niche 2)
Naval a/c work in a completely different way compared to land ones: there is really no place for cost-saving measures on the modern decks, as cost-saving are price-optimized, but space-inefficient. This is why we are left flatly with one "payloads" platform, and one stealth one.