Q1. The Chinese Government has recently cut 2012 GDP growth forecast to 7.5%.

Chinese Government forecast to lower its GDP growth rate to 7.5% from an 8% in place since 2005, a signal that leaders are determined to reduce reliance on exports and capital spending in favor of consumption. In face of global turbulence and a pressing domestic demand for economic restructuring, China forecast a slightly lower GDP growth rate to achieve "higher-level, higher-quality development over a long period of time." To achieve steady growth, the government will continue to expand domestic demand and keep foreign demand stable, vigorously develop the real economic, so as to counter instability and uncertainty at home and abroad.
In my view, there are two possible reasons for Chinese Government forcast to cut 2012 GDP growth at 7.5%.
The first reason is to comply with the need of international economic situation and domestic population structure change. Since China joined the WTO in 2001, China economic growth at double-digital in many years, it is benefit from rapid global economic growth provide the overseas market demand pull. However, with the outbreak of the 2008 global financial crisis and the ensuing sovereign debt crisis in the United States and Europe, the global economic growth in a black outlook, the overall recovery of economic in developed countries will be a slowly and long process. It will affected China economic. In expanding United States and Europe export market, adjustment of the foreign trade structure and improving the quality of trade. At the same time, China have to adjust the economic growth pattern, more excavating domestic demand, this is obviously can not achieve in short term. Otherwise, the "demographic dividend" factor has a great change between the population of working-age decline and the aging population rising, it supports China economic