The rules are clear. In the year of competition the athlete must be 16.
To enter younger athletes is cheating. And it appears that the Chinese may have cheated by changing the ages of the gymnasts.
Younger athletes are more flexible since their bones are not fully formed. Psychologically they are more inclined to do risker routines.
However, they are almost more likely to injure themselves - hence the prohibition.
It would be a very big deal if it were proven that the Chinese cheated - but I doubt if that proof will ever be forthcoming.