China Can't Create Growth Out of Tax Cuts, Natixis' Garcia Herrero Says

The video discusses the limited impact of trade deals on regional growth, emphasizing the need for Chinese stimulus. It highlights China's economic challenges, particularly unemployment, and suggests that fiscal measures, like tax cuts, may not suffice. Instead, bank credit to the private sector is expected to play a significant role, though its impact may be limited due to the sector's size.

What is the main reason the speaker is skeptical about the US-China trade deal's impact on regional growth?

• It will lead to a decrease in global trade.

• It will enhance regional cooperation.

• It will result in forced imports from the US into China.

• It will lead to increased exports from China.

Why is WTO reform considered crucial for small open economies?

• It will enhance regional trade agreements.

• It will increase tariffs.

• It will reduce trade barriers.

• It will lead to more imports from the US.

What surprising economic indicator is highlighted in the discussion about the Chinese economy?

• Increase in foreign investments

• Increase in GDP

• Rise in unemployment rate

• Decrease in exports

What is the anticipated source of economic stimulus in China according to the speaker?

• Increased government spending

• Tax cuts and bank credit

• Higher interest rates

• Reduction in public debt

How does the speaker view the effectiveness of tax cuts in stimulating China's economy?

• Uncertain

• Ineffective

• Moderately effective

• Highly effective