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I agree - the vast and easy availability of unskilled workforce is making uneducated Chinese workers very cheap (and educated doesn't mean having visited college - it means being able to actually produce something of value). However, well educated workers are paid higher in China than in the west, as they are really, really scarce there. The unskilled workers in the west merely profit from their nationality - which is of course rather inefficient.
So the only thing for Chinese workers to do would be to get skilled - therefore specialize and offer their services. Of course, they can't do that as a single person - it needs a team. And of course to build up and interconnect a team, you'll need capital. And THAT is actually scarce in China (not because the PBOC is supplying to few, but because it is distributed ineffeciently and thus use ineffecitvely). Economists often use the Cobb-Douglas function to estimate the influence of capital and workforce on each other: income = Technology * (Capital)^0.5 * (work force) ^0.5
As the internet made technology available everyhwere at any time, you can set it as 1.
What can China do about it?
Make capital markets more efficient, thus allow more intstruments, allow more international capital exchange and therefore enable knowledge to float freely.
Where's the catch?
If China does that, first of all the country will find itself in a deep recession, the housing market bubble will burst, salary will decrease (but prices will fall, so people will be still able to buy more or less the same amount of things as before), there will be unemployment and the government might lose some power.
But out of this, China would emerge like a phoenix from its ashes, much stronger than ever before. However, the government can't explain that to the Chinese people and, like every government, they want the system to be stable, rather than efficient - so salaries will stay much lower than in the west during the next 30 years.