Skip the party for China’s economy

[Bloomberg]( Today’s Agenda - China’s good [economic health]( may be skin-deep. - Sprint [might need a Plan B](. - Trump’s gun export plan [is dangerous](. - The stakes for [David vs. Elon](. Digging Deeper in China's Economy China’s economic growth in the first quarter was more robust than economists expected, as were some other figures from the world’s second-largest economy. That was all happy news for the many companies that want to sell goods in the country, and for the governments that rely on a healthy China. But don’t get carried away, Christopher Balding cautions. China’s economy [has a host of problems beneath the surface](. The government flooded the market with debt, but it isn’t flowing to areas such as infrastructure spending that underpin real economic gains. China’s consumers remain stretched, and they are wary of buying cars and smartphones or ordering takeout. Ultimately, Christopher says, the Chinese government may have to reset its expectations and accept slower economic growth. Bonus China reading: - The inclusion of yuan-denominated securities in the Bloomberg Barclays Global Aggregate Index shows international investors are [warming to China’s financial markets](. – Mary Schapiro - Booming sales of high-end goods in China couldn’t last forever, but strong revenue gains at L’Oreal SA are the latest sign that a [comedown might be gradual](. – Andrea Felsted  - China is [building its influence and expertise in the Arctic](, likely to strengthen its alliance with Russia and capitalize on the opening of shipping routes and oil-and-gas exploration. – James Stavridis Was This in His 300-Year Plan? Wireless-industry weakling Sprint Corp. thought it found a rescue last year by agreeing to merge with T-Mobile US Inc. Ah, but regulators in Washington do not care about Sprint boss [Masa Son’s road map for future centuries](. They reportedly told the companies they are unlikely to permit the merger to proceed as it’s currently constructed. (Sprint’s executive chairman [tweeted]( that the companies continue to talk to regulators about the proposed merger.) Tara Lachapelle writes that Wall Street had figured out the impact of the merger: Industry consolidation would [lead to higher consumer prices]( on wireless service. That’s something regulators do not like. Tara notes that if this long-troubled deal dies, Sprint will find it tough to continue without a partner. Bonus reading on sad companies: UnitedHealth Group’s CEO tried to control the narrative about potential widespread changes to the U.S. health-care system. Instead he [freaked out investors]( by calling attention to the system’s costs, complexity and shortcomings. – Max Nisen A Dangerous Game Congress should stop President Donald Trump’s dangerous proposal that would [make it easier to export firearms]( and tougher to trace who’s using them, Bloomberg’s editorial board says. Currently, the U.S. State Department handles applications for exports of firearms and some gun components and ammunition. Oversight has been lax, and weapons have wound up with rogue regimes and terrorists. If responsibility shifts to the Commerce Department, as the White House proposes, lapses will grow more frequent, the editorial board says. Commerce lacks the specialized staff and expertise to vet arms sales, and has indicated it will not feel obligated to notify Congress of gun exports valued at more than $1 million, as the State Department must. The editorial board also says Congress should stop a provision that would ease restrictions on people making untraceable guns using 3-D printers. He Wears Short Shorts Last year, Tesla Inc. CEO Elon Musk [mailed a box of shorts]( to David Einhorn, the hedge fund investor who says Tesla is doomed and is betting the carmaker’s stock price will fall — in other words, a “short” position. Musk’s joke qualifies as above-average financial markets humor. The stakes of Einhorn’s so-far losing wager are higher than the inseams on Musk’s gift. Nir Kaissar writes that Einhorn’s stock-picking reputation has been damaged by some unsteady investment returns. And if Einhorn continues to be wrong on Tesla, Nir says it would further [ding his credibility](, and stir more doubts about the investment model of betting on some stocks going up and others going down. Telltale Charts Politicians are debating India’s employment picture, but Shamika Ravi has takeaways from reliable figures: The states with the lowest unemployment have [removed red tape for businesses](, and the jobless rate in India is higher for better-educated workers. Liam Denning says Arch Coal offers lessons for oil companies about dealing with structurally declining markets: [Acknowledge the reality]( of falling domestic demand and ply shareholders with dividends and stock repurchases. Further Reading The sudden departure of ABB Ltd.’s CEO [creates an opening]( for investors who are pushing the Swiss engineering conglomerate to break up. – Chris Bryant The party of Margaret Thatcher [has lost its voice]( on economic policy. – Therese Raphael The U.S. Federal Reserve needs to expand its [unconventional recession-fighting tools](. – Noah Smith A YouTube slip-up during the Notre Dame fire was poor timing for a technology industry [fighting more regulation in Europe](. – Alex Webb Morgan Stanley predicted the IPO market will stay hot — [with significant caveats](. – Brian Chappatta Indonesia’s president should use his final term in office to [make it easier to do business]( in the country. – Daniel Moss Elizabeth Warren’s proposals to [make corporate taxes more fair]( would do more harm than good. – Karl W. Smith ICYMI The White House talks with China about [shifting tariffs]( to claim a political victory. It isn’t easy owning a store [in the Mall of Bezos](. Authorities warn about [DNA testing scams](.  Kickers Yes, you can [eat muskrat during Lent](. Semi-related: [No more goat roasts at Harvard](. Maybe it’s a bad idea to [hold a raffle for a Scottish castle](. Scholars figured out [who wrote “Beowulf.”]( (h/t Scott Kominers) Note: I'm filling in this week for Mark Gongloff. Please send feedback and cumin-rubbed roasted goat to Shira Ovide at sovide@bloomberg.net. [FOLLOW US [Facebook Share]]( [Twitter Share]( SEND TO A FRIEND [Share with a friend] You received this message because you are subscribed to Bloomberg's Bloomberg Opinion Today newsletter. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( Bloomberg L.P. 731 Lexington, New York, NY, 10022