Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Axios on your phone

Get breaking news and scoops on the go with the Axios app.

Download for free.

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Annelise Capossela/Axios

Chinese Communist Party Secretary Xi Jinping announced last week that the party must strengthen its leadership over private companies, and that entrepreneurs must meet the party's needs. 

Why it matters: Xi's new announcement will increase fears that Chinese businesses may serve as a Trojan horse for the CCP.

What's happening: On Sept. 15, the CCP's top decision-making body, the Central Committee, released a memo calling for closer ties between private Chinese businesses and the United Front Work Department, which is the CCP's bureau in charge of extending its influence and control to all corners of society.

  • The guidelines say the aim is to "create a backbone team of private businesspeople who are reliable and useful at critical moments."
  • On Thursday, the party also convened the first-ever conference on strengthening ties between private businesses and the UFWD.

Between the lines: Under Xi, the party is seeking to establish control over the private sector in a way that maintains robust economic growth while allowing the government to implement long-term strategy and commandeer private sector resources when needed.

  • In 2018, China's securities regulator issued a guideline requiring listed companies to include in their articles of association a section about the party's role.
  • The party aims to accomplish not just economic goals but also political and national security goals.
  • “Xi has clearly given a strong push to the United Front system to do more and be bolder,” said Alex Joske, a China analyst at the Australian Strategic Policy Institute who has written extensively about the department.

The big picture: U.S. concerns over TikTok are based in part on the suspicion that private Chinese businesses aren't able to fend off Chinese government demands for data or other assistance.

  • Chinese law states that companies and individuals are required to hand over data and provide assistance to the government and its intelligence agencies upon request, and that they must keep any such requests a secret.
  • The new memo adds in a strong political element, suggesting some companies may now be required to assist in political goals and activities — though the specifics remain unclear.

What to watch: While this measure is directed primarily at Chinese businesses, the policy could spill over beyond its borders, since many Chinese businesses have partners, customers, or operations abroad.

  • The Chinese government already pressures companies to act in concert with official diplomatic and foreign policy goals.
  • Chinese companies have canceled contracts with foreign companies when their governments have acted against Beijing's wishes, such as earlier this month when a Chinese company suspended a $23.8 million order from Czech piano company Klaviry Petrof after a Czech government official visited Taiwan.
  • Chinese companies have also pulled ads from foreign news outlets that publish content Beijing doesn't like.

Go deeper:

Go deeper

Dec 30, 2020 - World

EU strikes investment deal with China despite forced labor concerns

European leaders meet via videoconference with Chinese President Xi Jinping to finalize the investment deal. Photo: Johanna Geron, Pool Photo via AP

The European Union on Wednesday finalized an agreement in principle on a long-delayed investment deal with China, appearing to defy resistance from within the EU and a request for consultations about "common concerns" from the incoming Biden administration.

Why it matters: The deal will open up both markets to investment and commit Beijing to ending certain unfair trading practices, strengthening economic ties between the EU and its second-largest trading partner.

How the Delta variant ups the stakes in the war against COVID

Illustration: Shoshana Gordon/Axios

The dominant Delta variant's ability to efficiently infect people and rapidly grow inside a person is enabling the coronavirus to regain its footing in the United States.

Why it matters: "The solution is right in front of us — get everybody vaccinated and we wouldn't even be talking about this," NIAID director Anthony Fauci tells Axios.

Apple debuts plan to detect images of child sexual abuse

Illustration: Aïda Amer/Axios

Apple announced new iPhone features Thursday that it said would enable the detection and reporting of illegal images of child sexual abuse while preserving users' privacy.

Driving the news: One new system will use cryptographic hashes to identify illegal images that users are uploading to Apple's iCloud without Apple directly snooping in users' troves of photos, which can be encrypted.

You’ve caught up. Now what?

Sign up for Mike Allen’s daily Axios AM and PM newsletters to get smarter, faster on the news that matters.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!