Not that similar
Similar in concept, not necessarily design or execution. Single-engine multi-role J-7 type replacements, one for export and one for home use, although the J-10 is likely to be exported itself.
And if Chengdu is apparently at the forefront of China's LO aircraft development, maybe seeing this thing there (if it is in fact a JH-7 derivative) isn't out of the question. Think along the lines of Northrop's F-17 and McD-D's F-18 maybe. Could also be that Chengdu has the only facilities able to produce components to LO tolerances right now as well. With the size of the J-20 and the apparent size of its weapon bays, however, one has to wonder if this "JH-7LO" is yet another export-targeted platform, as the J-20 represents a far more survivable design with the probable range and internal volume to perform in the strike role.
Besides, with the J-20, producing a "JH-7LO" for home use is basically pointless. Hang a bunch of ordnance from it and you say goodbye to a lot of your LO benefits.