Well...it is wild speculation. But if you have worked in China, you know how businesses are conducted there. Bribing and syphoning of resources happen all the time. It is just part of culture. Sorry for being off-topic.
That's just masking what I suspect is ideologically driven BS with assumptions.
There was endemic graft and skimming, but it was only by tiny amounts in proportion to the value of the deals. Any more and you might as well hold up a neon light for the authorities.
In the past, small scale skimming was tolerated, maybe even encouraged since people who are also on the take are less likely to turn whistle blower, but there is always an unspoken rule about how much you can skim. That has deep rooted practical reasoning.
For one, if you take too much, that is likely to draw unwanted scrutiny and get everyone else in on the act in trouble. It is simply impossible for anyone to even dream of getting away with anything even an order of magnitude smaller than the scale of graft you are insinuating in modern China.
These days, with President Xi's anti graft measures in place, there has been a remarkable drop in even small scale skimming.
The reason the PLA is still using Type 59s is because the lion share of China's defense budget has gone to the Air Force, navy and 2nd artillery missile forces. Do you think all those new fighters, UCAVs, AWACS, FFGs, DDGs, LPDs, subs and missiles are all magicked out of thin air at zero cost?
Without air superiority, even Type 99s are just living targets for enemy planes and helicopters to kill at their leisure. With air superiority, even Type 59s auto win against M1 and K2 burning hulks. Shouldn't be hard to understand.