The mainland's 2012 growth target, set at an eight-year low of 7.5 percent, indicates its determination to transform its economy and boost internal consumer demand, which can benefit Taiwan as a result, a scholar from Taiwan said.
Sophia Shih, a research fellow at the Taipei-based Chung-Hua Institution for Economic Research who specializes in economic reforms of the mainland, said the target of 7.5 percent is “closer to reality”.
The mainland government's priority to expand consumer demand can benefit export-oriented Taiwan’s businesses on the mainland if they can successfully transform themselves into suppliers to local market.
Shih also commented that mainland’s decision to trim the growth target was inevitable as its economic outlook has dimmed because of weakening export demand after Europe's debt crisis. However, she noted “the target is not too bad.”
Judging from Premier Wen Jiabao’s work report, Shih said that the mainland government does intend to work on its economic structure instead of blindly seeking economic growth.
The mainland is determined to wean the economy off its reliance on exports and foreign capital due to looming uncertainties in both Europe and the US, Shih said, adding this is indicated by its plans to crack down on housing market speculations and solve local government debts.