The J-10CE question is tricky.
The most concerning part to me isn't that they're looking for J-10CEs, but that they're ostensibly cutting the Block-III order to accommodate it. If that had not been the case, then I would've thought, "okay, the JF-17 has done its job in the ASR, now onto the next program."
But by cutting into the Block-III order, they are saying that the J-10CE is the more necessary platform at this time.
This is the part that re-opens the discussion on JF-17 vs. J-10 and whether (a) the latter was the better bet or (b) we didn't set a high-enough design requirement for the JF-17.
It's a huge issue. The PAF never inducts a new platform without planning to build a fleet of 90+ aircraft. So, if not for JF-17, we're saying the PAF could've had 150+ J-10s. Conversely, if not for J-10, we could have 250+ JF-17s, or have front-loaded a bigger investment in the JF-17's design and feature-set.
In terms of the future, I suspect we'll put a much lesser emphasis on assembling the product, and much more on subsystem and weapons integration, building an IP base, and being part of the supply-chain.
But the challenge (with our psyche) is that this approach doesn't let us say, "we now build fighter planes" -- it's less visible. However, the value is much greater.
So, yes, we don't assemble fighter planes anymore, but we now, we can seriously talk about:
- integrating our weapons and subsystems of choice;
- building companies that can supply aerostructures, composites, etc
- engaging in R&D for flight control systems, seeker tech, ramjet and dual-pulse rockets
- etc