FTS,
This is part of China's long term strategy to develop a trade based system that more closely resembles the German model. In order to bring as many of its citizens into the economic system within a reasonable period of time, they simply cannot detour from their trade first model. Having said that, the German model (higher end goods with a higher profit margin and typically less susceptible to recessions) is being embraced. That doesn't mean that China will end the low cost/margin manufacturing and exporting. It will likely be their primary thrust for a long time.
The educated workers can easily move into the higher tech/durable goods jobs, while the uneducated agrarians are likely targeted as replacements/backfills. We are likely to see factories re-located to the agrian areas, if it hasn't already started. They are building the infrastructure to make it occur.
Not a bad model, actually. Their GDP is heavily reliant on exports; internal consumer consumption isn't high or stable enough to allow a spreading of the wealth, not yet at least. Government spending/investment as part of their GDP has risen sharply since the Great Recession started, which is a Keynsian model that has worked fairly well for them.
The Chinese leaders know quite well that an export driven GDP/economic model is problematic, but they have few other choices. All things considered, I give them an A- to this point. Real problems loom on the horizon, but I am pulling for them.