Over the years I've wrenched on lots of air cooled motors and I'd mention this
for what it's worth.
The air cooled are more sensitive to timing advance and the heat it generates.
Many of the air cooled had tech manuals that measured the BTDC with a spark plug bore gage and would state to set the piston 4 mm BTDC measured at the piston. Thus you TDCed the piston and marked the gaging rod and measured up 4 mm above that. Then moved the piston back and pushed the rod inward so when you moved the piston foreward it touched the rod and moved it up to where the 4 mm line matched to the point where you gaged the TDC from.
I don't know if these Chinese engines are doing something like that and tech manuals for them would indicate that or not. If I had one, as soon as I got it
I'd try to calculate this measurement before going any further. I'd write it down keep it in the tool box. I don't know how the ignitions are configured on these....whether with coil & battery with points and condensor or a unitized
mag with hall effect switch.
In most instanced I didn't use a timing light. The timing was set static. I had a small light bulb I soldered leads to and mounted this in a small empty parts box. When the leads were connected and I set the timing pully to it's mark all I had to do was move the distributor (or timing plate) to where the light just begin to glow. Then lock down the timing adjustments. Then it was good to go. If it was like the motorcycles........I made the spark plug being set X number of mm BTDC.....I purchased an adaptor for a sparkplug that was fowling due to excess oil in that cylinder. Then I took that to the hardware store and purchased a brass fitting that screwed into that sparkplug adapor that had a compression fitting. A simple piece of rod stock that fit snugly into that was purchased. When I got it home I'd use the grinder to slightly round the piston contact end and then cut the outside portion of the rod at about
four inches, so it wouldn't be too long and interfere with other parts of the bike when working.
Again, I don't know what kind of info these Chinese motors provide.
As for increasing the compression, I've ground (or milled) the base of the cylinder to where it sit deeper into the crank case. But it must be remembered that for daily use this makes the motor more tempermental, and will effect it's useful life expectancy. I doubt the Chinese are aware there are some old school American speed tuners around wanting to tweek these things as I see on the net.
I really think the free flow air cleaner and expansion chamber offer the biggest bang for the buck performance wise with the dependability the makers intended. If you're racing.....then anything goes.
If I adjusted my time ahead of the stated factory setting.......I'd be reading my spark plug often. Awhile back I posted photos of what good running 2 cycle plugs should look like and some photos of plugs that would mean the 2 stroke would be ready to fail soon.
Speaking for myself, I'd rather buy a larger motor than try to tweek a small one. It's just hard to argue with larger displacements.