No matter what, the KAAN fighter was going to be compromised, as Turkey had no one to sell it to from the very start.
The Gulf states are Turkey's region rivals, the Europeans won't buy Turkish fighters no matter what the same for the Western ally Asian countries.
That said the may problem with Pakistan isn't just China as it isn't a military threat to Turkey but India.
The Indians are going to be the 3rd largest economy in the world soon angering them isn't a good idea as it might lock us out of a lucrative economic opportunity and cause US Indians to lobby against Turkey.
is it clear that they are going to operate the KAAN fighter, or is it possible that they will just supply manufactured parts for the project?
is it possible that a less capable version of the fighter is sold to Pakistan if it buys the fighters?
finally, does anyone think that this will affect the Turkic states' willingness to join the project?