The Chengdu/PAC JF-17 Thunder (also known as the FC-1 Xiaolong) is the result of the "Super 7" project to produce a successor to the venerable J-7 in association with Grumman. However, economic sanctions by the US to China and Pakistan led to both countries funding a continuation of the project with the objective of providing the Pakistani Air Force with a modern multi-role fighter and as a both countries shared roughly the same proportion of the development costs. Similar in appearance to most lightweight 4th generation fighters, the FC-1 features an advanced cockpit with HOTAS controls, a digital avionics suite with pulse-Doppler radar and GPS, as well as compatibility with Chinese, Russian and Western weapons systems. Avionics and equipment are also sourced from numerous countries, including Chinese radar (similar to the one used on the J-10) and Russian engine (a variant of the one used on the MiG-29). Other advanced features include partial use of composite material and a diverterless supersonic inlet (DSI). Besides Pakistan, the JF-17 will likely be marketed to many foreign customers, particularly developing countries with limited military budgets, as a viable candidate for modernizing obsolete air fleets. In Pakistani service, for example, it will replace its ageing J-7, A-5 and Mirage III/5 aircraft and form the backbone of its tactical fighter fleet along with the F-16. Production is currently underway and various squadrons have now been formed with the aircraft; the only other export customer is Argentina but numerous countries have expressed interest.

The prototype FC-1 made its first flight on August 24, 2003. Compared to the prototype, production JF-17 aircraft underwent a redesign which added prominent leading-edge root extensions, DSI and various defensive avionics. An initial run of Block I aircraft ended in 2013 as production switched to the Block II with air-to-air refueling, improved avionics, and a higher payload. A more modern Block III is expected in 2016.