What are the operational requirements?If anything should compete for same resources it should be J20 and J16. Of course, politics may see it differently, so SAC and CAC may be guaranteed to get the same piece of financial pie.
Which is actually one of many explanations for a possible j16 production hike. With CAC having j10 and j20 production, SAC may've gotten more orders to even things out.
Certainly killing all/most of J10 production just so j20 could be chugging at respectable but quite ordinary 30 airframes per year is nonsensical. Smaller planes are always in some need, there's just not always the need for a twin engine, high operating costs plane for all missions.
It's just not credible for large numbers of opposing fighter jets to operate within 300km of the Chinese coastline now.
And there are already over 400 J-10s in service, so that is already a respectable number for air superiority and counter-air requirements closer to China.
So the next step is for the Chinese Air Force to operate offshore and project power into the Western Pacific.
For this mission, twin-engine heavyweight fighters work out cheaper in terms of presence and obtaining air superiority .