Sustaining a jump in production of 160 combat planes for a few years, just to go down soon thereafter is senseless. Either that production is going to stay, as the cold war is perceived as a real threat - or if there is no perception of threat then there'd be no hike in production at all.
So... either the rumor is just some mistranslation (or is not correct) or we will see a prolonged, decade long at least, effort to increase the size of chinese air forces. Which is then likely to stay at the new size of possibly 3000+ combat airframes. And since somehow I don't see US not reacting to such a build up and since US would be likely to increase its arsenal further - there's really no end in sight when it comes to increases. We might be looking at 4000 or higher numbers for chinese air forces by 2050 or so. Wild speculation, i know. But so is everything about the initial rumor.
Is there any doubt that China faces a New Cold War with the USA?
The only question is how large the military buildup will be.
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Looking to the past, we saw Chinese military spending double from 1960-1965 after the Sino-Soviet Split when Communist fraternity turned into Nationalist rivalry. Suppose that was to happen again?
China military spending would grow from $300 Billion in 2020 to $600 Billion in 2025
As a share of GDP, it is an increase from 2% today to roughly 3% of GDP.
That is still comfortably below the 3.5%-4% that the USA or Russia have routinely spent over the past 20 years.
So what could an extra $300 Billion buy every year?
And that is before taking into account that China has lower costs for personnel and equipment.
For example, the US currently spends $418 Billion outside of personnel costs.
So I reckon the Chinese military in 2025 could be matching whatever the US spends outside of personnel costs.
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In such a scenario, a Chinese Air Force with 3000 or 4000 combat airframes is entirely feasible.