Trump Administration discord over China policy; Xi says China will "punch back"; Sri Lanka's Belt & Road quagmire; No more period of strategic opportunity

Good morning from Sinocism. Here are the top things I am watching about China today:

• The discord among President Trump’s advisors over restrictions on Chinese technology investments and purchases is confusing just about everyone.

• US and Chinese stock markets have both been dropping. Xi may not care so much about stock prices but Trump does and a continued drop in the stock market may lead him to make concessions to China to avoid a full-blown trade war.

• Lingling Wei of the Wall Street Journal talked to people inside the room with Xi Jinping at last week’s meeting of the “Global CEO Council” and reports that he told the assembled CEOs that China will “punch back” against US trade tariffs.

There was an important change to the official rhetoric in the authoritative report (English, Chinese) on the recent Central Foreign Affairs Work Conference (CFAWC). Gone is any reference to the “period of strategic opportunity 战略机遇期”. It was in the 19th Party Congress report and was in the 2014 CFAWC, a…