A study of strategy of Small Economies facing the Transition of large Economies Industrial Structure

Taiwan economy has always been export-oriented, creating tightly-linked industrial chains between cross-straits companies tightly. Understanding the influence of transforming industrial patterns of major economic entities would be critical for long-term cooperative small economic entities (countries or regions) in the periphery. The author of this paper has thus analyzed the influences and impacts of Mainland China’s Twelfth Five Year Plan on Taiwan economics by input-output table. Impacts to cross-strait business chain were then assessed using the model of Mainland Chinese export substitution of Taiwanese counterparts. The results of this study show that under the trend of industrial restructuring in mainland China, the impact on Taiwan's GDP is about 0.65%. At the same time affect the distribution of labor market in our country, we must do as soon as possible