As for the Chinese 5th generation fighter (or 4th generation as they call it), it has always been a battle between SAC and CAC. We've received a lot of mixed/contradictory news over the so called J-XX in the past few years. People first speculated that it will be developed by SAC due to the model they saw in Zhuhai 2002. By 2007, we started to receive news that CAC's design was actually awarded the contract. At the same time, many people also certainly speculated that China was going to join this project for the longest time, but that never happened. I think that China knew what was at the stake in such a cooperation. They would likely get an offer from the Russians for ToT and some development work. Although, the Russians would freeze the design according to their needs and keep some of the trade secrets to themselves. The Indians have certainly found out first hand what you get out of such a partnership. Having said that, the Indians will still get more out of this than the JSF partners get from the Americans. We also speculated for the longest time that China would develop the 5th generation engine in cooperation with the Russians. That has also turned out to be false.
So, why did China not cooperate with the Russians. I think China realizes that it has enough aerospace technology base to be able to develop a true 5th generation fighter. At the same time, the Russians would always be the primary partner in such a project. It would be hard to imagine China wanting to act second-fiddle and be locked out of a large part of the development process and some of the advanced technologies. By working with the Russians, China would not only pay a majority of the development but also continuously pay Russians for certain parts of the frame, maintenance/repairs, extra supplies of the engine and maybe even missile/avionics cost. In the end, China has enough faith in AVIC1 to be able to develop this fighter.
Recently, we've received two pieces of news. The first one is an enthusiastic report on WS-15. The article just got really excited about using digital design for developing WS-15, but it did not really explain how well the project really is doing. According to some online sources, the engine should be ready in the middle to later part of next decade. The thrust performance is designed toward matching F-119, but it's hard to think that WS-15 would be as reliable and stealthy as F-119. We also got one final confirmation from CAC that they got the main design work for the 5th generation fighter. Now, the production facility of SAC may still be used to produce a large part of the 5th generation fighter, but PLAAF clearly likes CAC's design better. SAC will be saddled with the design for the naval fighter, future J-11 variants and UAV/UCAVs. CAC now has the upgraded J-10, the 5th generation fighter, the global hawk-like UAV and the JF-17 projects to work on. After SAC is done with J-8IIs (hopefully soon), SAC basically only has J-11 variants and UAVs to work on. Also, what does XAC have after JH-7A? I presume bomber or fighter-bomber projects, but there really isn't a good report verifying much of anything. Also, it's interesting that PLAAF selected CAC's design over SAC despite neither firm having built a prototype. CAC will now be in charge of getting some built soon that will use 2 WS-15 engine (or maybe WS-10 series in the beginning), radar (by probably 14th institute) and integrating different avionics together. CAC is already getting a lot of experience developing a new generation of avionics on the upgraded J-10. The 5th generation plane should take that up a notch to be able to fighter in the new environment. A new generation of missiles are also being developed for future fighters. We've seen/heard a 5th generation SRAAM, a successor MRAAM to PL-12 and a Metor-like ramjet powered LRAAM. CAC has shown that it can integrate all of this in the J-10 project. So, I think PLAAF is making the right decision to pick it ahead of SAC for the 5th generation design work. At current time, I've been reading 2015 as the year that this plane will join service. I think this is kind of optimistic, because they are not expecting first flight until 2012. I guess we will see how it turns out.
http://china-pla.blogspot.com/