Illustration: Aïda Amer/Axios

The travails of TikTok are the most visible example of how the rapidly deteriorating relationship between the U.S. and China can evaporate tens of billions of dollars of corporate value.

Why it matters: When corporations find themselves at the mercy of politicians flexing their geopolitical muscles, they generally end up ruing the encounter.

Driving the news: While President Trump has vowed to ban TikTok if it isn't sold to Microsoft, U.K. bank HSBC — which makes half of its money in Hong Kong — saw its second quarter earnings fall by 67%. The culprit? "Increased geopolitical risk." As the New York Times put it: "In Showdown Between China and the West, HSBC Gets Caught in the Middle."

  • By the numbers: HSBC was worth $157 billion in mid-February. It's now worth less than $90 billion. By contrast, America's largest bank, JPMorgan Chase — which is slightly smaller than HSBC in terms of total assets, but which is much less exposed to China — is worth about $300 billion.

The other side: Hong Kong's stock market remains a fantastic place to raise money. Alibaba Health easily raised $1.3 billion this week in a secondary share offering.

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TikTok asks court for temporary halt of U.S. ban

Illustration: Sarah Grillo/Axios

TikTok has filed in D.C. federal court a request for a preliminary injunction against President Trump's executive order banning the app.

Why it matters: The Chinese-owned TikTok is in the crosshairs of mounting tensions between the U.S. and Beijing, culminating in Trump issuing a ban of the app unless it can be sold to American owners. The result has been a messy process that is still waiting final approvals.

California to independently review FDA-approved coronavirus vaccines

California Gov. Gavin Newsom. Photo: Justin Sullivan/Getty Images

California will "independently review" all coronavirus vaccines approved by the Food and Drug Administration before allowing their distribution, Gov. Gavin Newsom (D) announced at a news conference Monday.

Why it matters: The move that comes days after NAID director Anthony Fauci said he had "strong confidence" in FDA-approved vaccines could cast further public doubt that the federal government could release a vaccine based on political motives, rather than safety and efficacy.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Annelise Capossela/Axios

  1. Politics: Trump says if Biden's elected, "he'll listen to the scientists"Trump calls Fauci a "disaster" on campaign call.
  2. Health: Coronavirus hospitalizations are on the rise — 8 states set single-day coronavirus case records last week.
  3. States: Wisconsin judge reimposes capacity limit on indoor venues.
  4. Media: Trump attacks CNN as "dumb b*stards" for continuing to cover pandemic.
  5. Business: Consumer confidence surveys show Americans are getting nervousHow China's economy bounced back from coronavirus.
  6. Sports: We've entered the era of limited fan attendance.
  7. Education: Why education technology can’t save remote learning.