That's because CCP diversified its export to reduce the reliant to a single market, USA.
To be honest, the goal of Putin/ Trump is not to reduce the trade deficit, but to kill China’s economy, sabotage its growth and to make CCP collapse. That’s the only goal. No matter how they say it is not. CCP should know it by now. If their goal is to reduce deficit, then they will want to sell as many products as they can, as you said, including all those chips CCP want to buy. But no, they don’t want to sell any of those.
CCP needs to be very careful, don't get into any proxy war (aka Japan, Taiwan, Philippines…).
I don’t know how to stimulate consumption but I don’t like the way USA does it to force people consume, such as not building public transportation so people have to buy cars, auto insurance, gas in order to go to work/ grocery store/ and to survive. This not only significantly increased labor cost, but also reduced the company’s profit margin, increased their product cost and reduced company’s competitiveness in the world, contributed to the vicious cycle. Another example, over-issuance of personal credit card makes people consume above their capacity and causing tremendous personal credit card debt, just like USA government over borrows to pay for their pet projects and now they cannot even pay off the interest of their debt which is $38 trillion and growing : ( One more example, maybe not directly associated with overconsumption, is the morbid obesity in USA. It significantly reduced the quality of life and increased government health costs. Overconsumption makes people sicker, labor costs much higher and personal debt heavier… Those are all in the wrong directions.
