Wasn't the problem with Iraqi tanks their ammo? Soviets sold some downgraded export version with steel penetrator to them, pretty unsurprising that those T-72 can't pen M1s armor. In terms of firepower the PLA tanks shouldn't have any issues. Gen 3 rounds should be available to all guns now.
The Iraqi tanks faced many problems.
1) The ammunition was indeed outdated, it had started to be phased out in Soviet service around 1970 or so IIRC, yet here it was being used on the front-line in 1991.
2) Iraqi tank gun barrels were worn-out after years of fighting Iran, etc... and thus suffered from accuracy problems at long ranges.
3) Iraqi tanks used an inferior sighting-system as compared to Soviet equivalents (export system). It was mechanical/analog whereas there was something more modern and computerized in Soviet T-72s.
4) The best Iraqi tanks were T-72M tanks, the best of which were roughly equivalent to export-downgraded T-72A. Which was a distinctly second-line tank for the Soviets at the time. And they lacked add-ons such as ERA, anti-missile systems, etc... And many Iraqi tanks were inferior to T-72A.
5) U.S. achieved strategic surprise against Iraqi tank forces, having benefited from air supremacy and satellite intel that Iraqis didn't have. Many of the tanks shot up by U.S. forces were empty, as the crew hadn't even boarded the tank yet.
Basically, Iraqi tank forces were mostly leftovers from Iraq-Iran war of 1980s. It was an export tank force built by East European countries, such as Czechloslovakia, using second-line technologies intended to face Western export armies. Not first-rate NATO forces. And they were depleted, and using poor sights and ammunition.
Iraqi performance shouldn't be taken to represent the "Soviet way," for a variety of reasons. Soviets had more modern tanks at the time, such as T-72B and T-80, with T-90 predecessor on the way. They had ERA, active defense systems already in-service. Gun-launched guided-missiles extended the combat ranges. New tanks, like the predecessors to T-14 were being studied, as well as some tank-destroyers. The plan to fight NATO involved massive use of artillery flares to help early-generation infrared equipment while hurting NATO optics, and of course tanks would have operated in conjunction with air support and massed artillery.
Iraq had some pieces of the Soviet army, but lacked many others. Soviet MBTs were mainly intended to fight in much-closer European conditions, in wet and muddy/snowy terrain, near hills and valleys. Soviet tanks had to be "good enough" to take on local NATO forces, so they were always being upgraded. But Iraq's use of tanks hardly represented the philosophy of the original builders. This is sometimes forgotten when discussing "Soviet armour philosophy" and Iraqi tanks together.