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!

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!

Israeli Prime Minister Benjamin Netanyahu and Chinese President Xi Jinping. Photo: Xinhua/Rao Ainmin via Getty Images

Officials from Israel's Foreign Ministry warned in a classified Cabinet meeting last month that if the Israeli government doesn’t create a strong monitoring mechanism on Chinese investments, it could lead to a harsh confrontation with the Trump administration, 2 ministers who attended the meeting tell me.

Why it matters: The Foreign Ministry warning, which came on July 24, led Prime Minister Benjamin Netanyahu to postpone a vote on forming such a mechanism that was apparently too weak. Chinese investments in Israel have become the main source of tension with the Trump administration over the last 2 years.

  • President Trump and other senior U.S. officials have asked Netanyahu several times to take steps to limit Chinese investments.
  • Israeli officials say the Trump administration has started showing signs of nervousness about what it sees as foot-dragging by Netanyahu on the issue.
  • In their last meeting in March, Trump warned Netanyahu that not addressing the issue could harm defense and intelligence cooperation with the U.S., according to White House officials.
  • Those officials tell me Netanyahu told Trump he understands the sensitivities, but wants to find a balanced policy that won’t harm Israel’s relationship with China.

The latest: During a visit in late June from White House national security adviser John Bolton, Netanyahu committed to passing a decision through the Cabinet on monitoring Chinese investments before Israel's Sept. 17 elections.

  • 10 days ago, Netanyahu’s national security adviser Meir Ben Shabbat presented to the Security Cabinet a draft resolution on this issue.
  • The plan was to vote on the resolution at the end of the meeting, but the Foreign Ministry raised deep reservations. They stressed that it was too weak and wouldn't address U.S. concerns.
  • For example, the draft resolution didn’t include monitoring of Chinese investment in Israel's high-tech sector — a major source of concern for the U.S., both for economic and security reasons.

Ministers who attended the meeting tell me the Foreign Ministry recommended that any monitoring mechanism on Chinese investments be tough enough that the U.S. would feel its concerns were taken into consideration.

  • They said the alternative was to risk confrontation with the Trump administration. That warning led to a postponement of the vote.

Israel's Ministry of Finance pushed back, warning that tight regulation on Chinese investments in the tech sector could harm Israeli companies and lead them to take their business abroad.

  • Netanyahu asked his national security adviser to hold another round of interagency consultations, including with Israeli Ambassador to Washington Ron Dermer, the ministers tell me.
  • An amended text could be brought to the Cabinet as soon as Wednesday.

The other side: A White House official told me, "We hope the Israelis will take steps to address our concerns about China — including passing a resolution in the Cabinet on monitoring Chinese investments."

Go deeper

Biden speaks with Macron for first time since diplomatic crisis

President Biden and French President Emmanuel Macron have a conversation ahead of the NATO summit in Brussels, on June 14, 2021. Photo: Dursun Aydemir/Anadolu Agency via Getty Images

President Biden on Wednesday spoke with French President Emmanuel Macron for the first time since a diplomatic row erupted over a scrapped submarine order, per the White House.

Driving the news: Macron said that the French ambassador will return to Washington next week and will resume working with senior U.S. officials.

2 hours ago - World

Scoop: U.S. and Israel held secret talks on Iran "plan B"

Bennett and Biden. Photo: Sarahbeth Maney/Pool/Getty Images

The U.S. and Israel held secret talks on Iran last week to discuss a possible “plan B” if nuclear talks are not resumed, two senior Israeli officials tell me.

Why it matters: This is the first time a top-secret U.S.-Israel strategic working group on Iran has convened since the new Israeli government took office in June.

2 hours ago - World

Scoop: Jake Sullivan plans to visit Saudi Arabia, Egypt and UAE next week

Sullivan. Photo: Yasin Ozturk/Anadolu Agency via Getty Images

White House National Security adviser Jake Sullivan is planning to travel to the Middle East next week, including a stop in Saudi Arabia. He would be the most senior Biden administration official to visit the kingdom.

Why it matters: Sullivan's first trip to the region since taking office is expected to include stops in Saudi Arabia, the United Arab Emirates and Egypt, sources briefed on the plans tell Axios. All three countries are longtime U.S. partners who have faced some early tensions with Biden.