The little dwarf depends a lot from a bar, as far as I know the only combo than I can start from a low attack, is cr.b, cr.a and then one of his DM's
I like his standing D, is easy to quick max, and has some priority IMO, a good combo is cl.c, f+a, QM, Cl. D, qbc + c, qcb + d, and if you are at 5/8 from the screen, you can keep continuing with another qcb + c and D, and then the DM, problem is that like DG said, the best thing will be to block always, so there goes the fireball spam game, so it will take some skill to use Bao, but overall, he can do damaging combos with little meter