WZ16 is definitely meant for civilian market. It may see usage in military craft as well (with or without renaming the engine to something else) but most of the engines are going to be put in AC352, for civilian market within China and close-by countries.
This line is quite clear: "While development work has been equally shared between Airbus Helicopters and Avicopter for the EC175/AC352 project, production is likewise shared, combining the capabilities of both companies. Coming from a common platform, two different rotorcraft are being built: the AC352, assembled and supported from China by Avicopter, mainly for the Chinese market; and the EC175, assembled and supported by Airbus Helicopters from Marignane, France, for the worldwide market."
Same news reported by Chinese media:
Why *might* a name change be prudent? Because one never knows when the West might object to technology being put to military use. Right now, WZ16 is to be used for civilian craft. But there might be issues and perhaps even sanctions or what not if it's publicly announced to be used in military craft as well. Basically, similar issues as with PWC engines. It doesn't matter if engine is licenced from western tech or if it was co-developed, it still has western input in it. (Just like US is stopping Scalp cruise missile deliveries to Egypt because a few components within them are US sourced) With engine being named WZ18 or what not, China would not be admitting to anything. There'd be burden on West to prove it's the same engine. And getting spies inside the military to prove that may not be as easy nor as worthwhile.
