There's no fiscal 'bazooka' that China can aim at all of its economic troubles, Citi strategist says

• There isn't a fiscal bazooka that can be aimed at all of China's economic issues, a Citi strategist says.
• The idea that China's government will be able to steer the economy towards prosperity is an assumption that needs to be revised.
• "We know that fiscal is the number one lever, but it's still very troubled waters for the Chinese economy."

China's economic situation is far too anemic for a big fiscal spending package to save the day.

"We haven't had any bazooka reaction by the government," Luis Costa said in a CNBC interview. "This is the crux of the issue here. Over the past 10 years we developed the sense that the Chinese government can steer the economy to prosperity."

He added: "We have to revise that assumption now."