As mentioned before, I do think this is real, at least in the sense that the photographed object exists. However, to me this resembles more of a scale mock up. It is entirely possible that they can build and are building a fighter with a similar design to this model. If they did build this aircraft it would be difficult to estimate its ability to avoid radar, because as far as I know, no one knows if it is covered in radar absorbant skin. To my untrained eye this aircraft doesn't look like it would handle well with that strange wing set up, but I am not an aeronautical engineer.
As an offtopic note, I do believe that we always need to be wary of our potential enemies, and that we need not underestimate their industrial and technological capabilities. For example I would not be surprised to see the Chinese stealth fighter enter production sooner that the 10-15 year estimate that I have heard thrown around by some people. The day that allied nations cease to develope newer, better weapons platform because we do not believe that other countries are capable of producing machines that could be equally as deadly is the day that we will be in for a nasty surprise. Even if other countries lack some of the technology we possess, sheer numbers can overwhelm superior quality, lower numbered equipment; as demonstrated by the Soviets in WWII.