Well, has to make it up by domestic consumption.

It's frustrating to see the demand for chinese goods going down , exporting less and at same time, you have whole bunch of foreign companies trying to get into CHina to make money.

Less chinese export + more foreign goods in china = Disaster

You can't controll the export part. But definitely ways to combat the inrush of foreign goods into china without infringing the WTO rules.

1) Patriotic education, Government should sponsor ads to promote national brand over foreign brand.

2)Mandate all government and acadmic instituiton to promote domestic products, such as Godson processor running on Linux box. The ratio of Windows machines to Linux machine should at least be 50%-50% If not using windows, more companies would pop up to develope Linux type of applications.

3)Increase the speed of South to North water diversion projects. If abundance of water reaching to North(Beijing, Inner Mogolia, Shannxi, Ninxia) and North west (Xinjiang, Gansu,)
Then some of the desert areas can be converted into semi arable farm land(potatoes, crops for biodiesel fuel, any type of crops demand less water)
With the water, new cities will be able to pop up. Unemployed people from different provinces will able to migrate to those new land to build up new communites and plan the crops raise the food output of the country.
Heck, look at california , arizona,in US, used to be big desert but able to changed into livable commnuties and farm land by channeling the water from colorado.

4)stop risking and risking money made from the good days and invest in the useless financial sectors in oversea. Instead should be investing in the country's own infrastructure. Money make from the good ole days doesn't mean you can continue to make those type of money

1)Switch from a mass export economy to a Domestic consumtion economy, (China is doing that slowly, when 700 million people is in the middle class u can bet china will raise the value of yuan)

2)Promote R and D in addiction to poduction and servies. R and D will promote new tec and new products exclusively produce in china. Kind of like how japan and EU is leading the feild of R and D.


All those things takes decades. THe most important thing is to increase china middles class from 300 millions to 700billions+.

Is the average wage good enough to increase domestic consumption?

It's the chinese companies themselves that would rather sell their products to overseas retailers, they can get alot more for selling a toy in Warmart than selling the same toy in a toy store in China - which delivers another question: will the Chinese government subsidy these companies so the average chinese consumers can afford these goods?

you always try to expand your products to other markets. Chinese products are sold in china the same as it is shipped to oversea. The thing is that there is about 300-500 million "middle class" chinese who would buy these product. There are still mass of people that need better jobs. Thats why the CCP refuse to increase the value of the Yuan. THe CCP wants to wait till at least more than half the populations have reach the middle class status. Thats why increasing domestic consumtion in china also means pushing people from povetry to the middles class.