Sign up for our daily briefing

Make your busy days simpler with the Axios AM and PM newsletters. 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 the Axios Closer newsletter 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!

Sign up for Axios Pro Rata

Dive into the world of dealmakers across VC, PE and M&A with Axios Pro Rata. Delivered daily to your inbox by Dan Primack and Kia Kokalitcheva.

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 the Axios Sports newsletter. 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!

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 the Axios Des Moines newsletter.

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 the Axios Tampa Bay newsletter.

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!

Want a daily digest of the top Nashville news?

Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Columbus news?

Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Dallas news?

Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Austin news?

Get a daily digest of the most important stories affecting your hometown with the Axios Austin newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Atlanta news?

Get a daily digest of the most important stories affecting your hometown with the Axios Atlanta newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Philadelphia news?

Get a daily digest of the most important stories affecting your hometown with the Axios Philadelphia newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Chicago news?

Get a daily digest of the most important stories affecting your hometown with the Axios Chicago newsletter.

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!

Want a daily digest of the top DC news?

Get a daily digest of the most important stories affecting your hometown with the Axios DC newsletter.

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: Aïda Amer/Axios

U.S. markets stand to lose $2 trillion in value if D.C. and Beijing drift further apart.

Why it matters: Political chasms are showing up in new securities regulations that put companies and investors in a bind. The rules are also another reflection of how much relations between the world’s largest economies have cooled, even as they remain economically interdependent. 

Driving the news: Ride-hailing giant Didi is preparing to delist from the New York Stock Exchange and to relist in Hong Kong following pressure from Chinese regulators.

  • It’s the first — with more than 200 others potentially at risk for delisting — as Chinese and U.S. regulators simultaneously pull and push Chinese companies out of U.S. markets. 

The details: SEC rules laid out last week require Chinese companies listed in the U.S. to face audits or risk delisting within three years — an escalation of a nearly two-decade old requirement.

  • Meanwhile, Beijing’s financial regulators are readying rules that will make it more onerous and costly for Chinese tech startups to list outside of China.

The backdrop: D.C., over the past five years, has cracked down on Chinese businesses and executives over national security and human rights concerns.

  • China’s economic development over the past three decades means the country no longer needs massive Wall Street deals like Didi.

What they’re saying: “[M]ore and more listings will occur [on Chinese stock exchanges], both due to China pulling companies home, as well as the U.S. pushing them out,” Gabriela Santos, global market strategist at J.P. Morgan Asset Management, tells Axios.

Threat level: “Absent a political solution,” all Chinese companies listed in the U.S. could be delisted within three years, says Brendan Ahern, chief investment officer of Krane Funds Advisors.

By the numbers: There were 248 Chinese companies listed on the three largest U.S. exchanges as of May 2021, according to the U.S.-China Economic and Security Review Commission.

  • The total market capitalization of these firms exceeded $2 trillion, or just under 10% of the NYSE’s 2020 equity market capitalization, according to the World Federation of Exchanges.

Be smart: Chinese companies are "stuck between a rock and a hard place," because Chinese law has prohibited them from undergoing audit reviews that will keep them listed — but the companies were allowed to list when it was known that they couldn't adhere to the reviews in the first place, Ahern notes.

  • The SEC, Nasdaq and NYSE declined to comment.
  • The Public Company Accounting Oversight Board oversees the audits and says on its site: “We remain concerned about our lack of access in China and will continue to pursue available options to support the interests of investors and the public.”
  • On Sunday, the China Securities Regulatory Commission issued a statement addressing the audit issue saying there's been cooperation between U.S. and Chinese policy makers and that they've "worked together on pilot inspection programs."

What to watch: Shares of U.S. listed companies including Alibaba, JD.com and Baidu have all fallen this year amid this regulatory uncertainty and an economic slowdown in China.

  • Yes, but: Despite this year’s headlines and volatility in Chinese assets, “our discussions with institutional clients around adding Chinese assets to portfolios have only increased,” says Santos.

The bottom line: Securities regulators in the U.S. and China want to draw new rules of engagement that only push them further apart.

Go deeper

Dec 6, 2021 - World

U.S. announces diplomatic boycott of Beijing Winter Olympics

An Olympic-themed sculpture in Beijing on Dec. 1. Photo: Hou Yu/China News Service via Getty Images

The U.S. announced Monday that it will not send officials to the 2022 Beijing Winter Olympics in protest of human rights abuses committed by the Chinese Communist Party.

Why it matters: The diplomatic boycott — which won't prevent American athletes from competing — marks a major escalation between the U.S. and China amid already heightened tensions over the CCP's treatment of Muslim minorities, military threats to Taiwan and economic tariffs.

Jan 13, 2022 - World

Biden administration criticizes China's move to cancel more flights

United Airlines flights are among the latests to be suspended. Photo: Elijah Nouvelage/Bloomberg via Getty Images

The White House criticized China's decision to cancel more flights from the U.S. on Wednesday, saying it was "inconsistent with its obligations under the U.S.-China Air Transport Agreement."

Driving the news: China announced it suspended six flights over the course of the next week due to passengers testing positive for COVID-19, per Reuters.

Aug 7, 2021 - Sports

What to expect at the Beijing 2022 Games

Illustration: Shoshana Gordon/Axios

The Winter Games are just six months away, kicking off in Beijing on Feb. 4.

Why it matters: Beijing will become the first city that has hosted both the Summer and Winter Olympics, and it will do so when the virus that originated in China will still be wreaking havoc on the world.

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!