Ugh, enough of this revisionist history changing to suit your preferred narrative!
The PLA has always placed far greater emphasis on marksmanship than other major militaries because of much of its early existence, the PLA has suffered terrible logistical constraints.
It started life as a peasant resistance movement, and only had what weapons and ammo it could beg, borrow and steal. So they needed to make every shot count.
The PLA also suffered from significant logistical bottlenecks during the Korean War, which is the most significant foreign action it has ever fought in.
All of that bitter experience leaves a strong mark on the collective institutional memory of the PLA.
The even back in the day, the PLA had very high accuracy requirements for the Type81, which continued through to its current Type 95 and 03 models.
The principles of sniping is just the application of ballistics calculations, and being able to accuracy calculate point of impact for a bullet is exactly the same as for a cannon round or tank shell.
It's not so mystical dark art like Hollywood films would make you believe.
The biggest difference is that unlike a tank or naval ship, which would rely on computers, atmospheric sensors and ballistics tables to do all the hard work, a sniper needs to do the maths in his head (although with developments like Aimpoint and smart bullets, even that may become a thing of the past in years to come).
But the thing is, that kind of mental arithmetic and memory requirement favours the Chinese over westerners because of the very different primary education philosophies employed.
In China, school kids do an abcene about of maths and trigonometry as part of their primary education, and would go as far as to memories things like the Pi times tables (I certainly did). While the kind of calculator like mind that sort of schooling develops is of little use in most real life fields, it would be an immense benefit for a sniper.
I would expect them to have memories the most commonly applicable parts of ballistic tables for the guns and ammo they are using, so that when a spotter calls out range, wind and humidity, they instantly know what the hold over/under needs to be to get a bullseye.
In addition to the mental skills, PLA snipers also train to develop physical skills that are simply unheard of for western snipers.
Never have I seen snipers from any other military who could hold their gun so perfectly still you could balance bullets on the barrels while the guns are aimed freehand.
Those are the hard skills that takes years to develop and perfect.
The reason the Chinese snipers did so poorly in the first sniping competition was because the organisers banned them from using their own guns.
It's a pretty archaic and snobby rule that semi-automatics are not allowed in sniping competitions.
The only semi-reasonable reasoning other than patronising snobbery for justifying that requirement is the argument that someone with a semi could potentially cheat easier by plucking off another shot without anyone noticing if he totally missed the target with his first shot.
Both incredibly unrealistic and unreasonable. If you could somehow miss the extra gun shot, what makes anyone think they would be able to suddenly spot fowl play from an extra pull of the bolt action, which would be far more discrete?!
Apply some common sense and deductive reasoning. After coming last in the first competition because they had to use unfamiliar guns with totally different ammo and ballistics characteristics, the Chinese have since pretty much doninated every other sniping event they have competed in.
Does that sound like they Chinese had no clue about sniping and only started looking up the subject after the first humiliation?
The fact that the PLA has snipers of that quality proves that the lack of western-like sniping units is a choice, and not because they couldn't produce snipers.
To understand why that choice was made, and why the PLA is changing its policy in this regard, you need to consider the broader strategic aims of the PLA then and now.
Sniping is a high cost, low impact profession within the military. Everything about the sniper costs significantly more money compared to line troops.
Their guns are more expensive, their optics far more so, their ammo is more expensive, and they need to shoot a lot more often in training to retain and hone their edge.
On the battlefield, especially a fast moving fluid modern, mechanised battlefield, their utility is limited.
In my view, the role and impact of snipers have always been romanticised and exaggerated by popular media and fiction, because it plays so well into your typical hero-centric story-telling format.
Your average reader/viewer doesn't want the reality of war, where the vast majority of soldiers do their level best but only have a minimal direct impact on the course and outcome of engagements and wars.
They want to read about the heroes and modern Knights, which is why snipers and fighter pilots get so much attention.
A sniper could have a huge impact on the course of a battle, but it's extremely rare for such occurrences to happen.
In real life, I struggle to think of examples where battles have turned on the bullet of any sniper taking pot shots from a mile away.
Because of that sobering, objective assessment, the PLA decided mile long sniping wasn't worth the cost to invest in.
Instead, they opted to go the squad designated marksman route, where they gave their snipers semi-autos and embedded them at the platoon and squad levels.
The aim wasn't to pick off that random enemy a mile away taking a smoke break. It's to pick off those two or three hostile who are currently shooting at your troops.
The reason for the PLA showing interest in long range sniping is many-fold
1) there is the obvious prestige element. The PLA top brass likes it when PLA troops win international competitions. When that happens, the discipline in question gets more prestige, and are so more likely to get more support and funding.
2) China has gotten a lot richer as time passes, and the PLA has benefitted from that economic growth. With growing defence budgets comes re-assessments of projects and programmes' viability.
In the past, when the choice was snipers or say, Type99 MBTs, the snipers would obviously loose out. But as defence budget grows and top priority projects gets funding allocated first, the MBTs, SAMs and other top priority systems have already had sufficient funding allocated, and there is still enough money left in the pot, snipers would be far more likely to get the necessary funding now, when they are being weigh against things like tastier MREs or better looking uniforms etc.
3) the role the PLA sees itself performing is changing.
As China and the PLA grows stronger, and as China's international interests expand, the PLA is no longer exclusively concerned on defence of the Chinese mainland, because that objective could already be met without the PLA devoting 100% of its resources to achieve it.
More and more, the PLA is looking to develop an expeditionary military capability, principally as a contingency plan to secure China's collossal OBOR future development initiative.
For expeditionary engagements, PLA forces would expect to be faced with superior numbers of inferiority trained and equipped enemies. Which is very different from a situation where the PLA is defending the Chinese mainland from foreign invasion. Different missions require different tools and tactics.
In that regards, it would pay to examine western recent expeditionary wars and engagements to see what tools worked best for them, and snipers work a lot better in such expeditionary engagements.