Given the scenarios you mentioned it does make it logical on why the PLAGF isn't getting new Infantry kit but rather PAP and Police forces because if China does gets into a insurgency, PLAGF will not be the frontline force but rather PAP which is why they get the modernization rather PLAGF.Yeah but if the PLA ever was in a situation where infantry fights at night were common place and a major cause of casualties then chances are:
1. It's not an important conflict for the PLA to begin with, or
2. It's an important conflict for the PLA and they have already lost in the aforementioned much higher yield domains and have been reduced to a semi-irregular insurgent force like the Taliban.
This is how the Chinese security forces operated since Xinjiang Conflict and HK 2019 riots.