your spark plug is very black, could be the remaining oil in the bottem end thats getting mixed up causing it to run slower (aka fouling the plug)That's right. Cheap China Engines are messed up.
also the engine is running rich (causing it not to rev up) you need to get a smaller (leaner) jet to compensate.
but first get a NGK B6HS spark plug and see if that fixes it
then if that doesn't work get a leaner jet kit
(stock size is .70 so try a .68 or a .66, that should get you in the right zone)