China Is Said to Plan $90 Billion Cut in VAT for Manufacturers

The video discusses China's fiscal policies, including a potential VAT cut for the manufacturing sector, and the political pressures faced by President Xi Jinping. It highlights economic predictions by Morgan Stanley and the central bank's prudent policy approach. The video also addresses internal party tensions and the significance of historical anniversaries in China.

What fiscal measure is being considered by Chinese policymakers to support the manufacturing sector?

• Cut in VAT by 3%

• Increase in corporate tax

• Reduction in import duties

• Subsidies for exports

What is the expected range for China's growth target as mentioned in the parliamentary session?

• 5% to 5.5%

• 6% to 6.5%

• 7% to 7.5%

• 4% to 4.5%

What is the role of the PBOC as discussed in the session?

• To introduce new currency notes

• To ban foreign investments

• To reiterate its prudent policy

• To increase interest rates

What significant anniversaries are mentioned as potential concerns for Chinese policymakers?

• 30th anniversary of the Tiananmen Square massacre

• 100th anniversary of the Communist Party

• 50th anniversary of the Cultural Revolution

• 20th anniversary of China's WTO entry

What internal challenge does President Xi Jinping face according to the discussion?

• Lack of international support

• Decline in public approval ratings

• Internal tensions within the Communist Party

• Economic sanctions from the US