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CNN NewsNight with Abby Phillip

Trump Meets Xi in China; Plans to Build Trump Tower in Australia Scrapped. Aired 10-11p ET

Aired May 13, 2026 - 22:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[22:00:43]

UNIDENTIFIED MALE: This is CNN BREAKING NEWS.

ABBY PHILLIP, CNN ANCHOR: Good evening. I'm Abby Phillip in New York. Any moment now, President Trump is expected to meet face to face with Chinese leader Xi Jinping. This high stakes meeting comes at a crucial moment for both Trump and the United States on the world stage. And it's set against the backdrop of the war in Iran, of course, which has dragged on well past the President's initial timeline.

Here at home, the conflict is growing increasingly unpopular with Americans while Trump faces dismal polling numbers with just 35 percent approving of his job as president. And we are looking here at live pictures of Beijing where we're expected to see both President Trump and the Chinese leader Xi Jinping any moment now. Jamie Metzl is with us.

Jamie, can you tell us, you know, just in this moment, these face to face interactions, not that common between these two leaders, what are you expecting?

JAMIE METZL, SENIOR FELLOW, ATLANTIC COUNCIL: Well, I'm not expecting a lot in terms of outcomes, but that doesn't mean this meeting isn't going to have maximum significance. President Trump is heading to Beijing with the weakest hand of any president, American president ever meeting with a Chinese leader. There's a -- the situation in Iran isn't going very well. President Trump started his term saying we're going to be tough on China on trade and has backed off.

The American presidents have always been able to say American democracy is strong and we can lead by example, but nobody is undermining the credibility of the American democratic system more than President Trump. But at the same time, every American should be rooting for President Trump to do as well as possible in Beijing, and every American should be rooting for President Trump and our troops to succeed in Iran so that he will be strengthened and will be strengthened.

PHILLIP: All right. I think we're looking at pictures of just some images from today, President Trump in the beast driving around there. Kristen Holmes is with us, and she is in China traveling with the president. Kristen, we're expecting to see the two leaders face to face in this hour, perhaps hear a little bit from them later in the hour, but tell us about what has happened thus far since you've been on the ground.

KRISTEN HOLMES, CNN CORRESPONDENT: Well, so far, all we've seen is this very brief vision of President Trump getting off the plane. There was some pomp and circumstance. It was a red carpet, exactly what you would imagine President Trump would want arriving in China. He was greeted by the by the vice president of China, which shows how important this trip is, as well as a delegation on the ground.

There were students with flags, with the Chinese and American flag. And then this is the first time we're going to see the two leaders together. This is the first time they're going to see each other face to face. And this is really where you're going to see that big celebration and one that President Trump remembers fondly.

This is something that we saw back in 2017, a difference, of course, being that Melania Trump was by his side, but he's going to get out of the car and walk face to face with President Xi. They're going to go down this red carpet. And, of course, you can see there the Americans flying --

PHILLIP: We're going to listen in right now as we see them on that red carpet meeting face to face and shaking hands. Let's listen and watch.

So, Kristen, as we're watching these images of President Trump walking down this rope line of what looks like Chinese dignitaries, one thing I am noticing, and I wonder if you have some insights into this, is that, there's -- it does not appear to be any maybe or many Western press in close proximity to the President right now.

[22:05:14]

Is that your understanding of what's happening in this moment?

HOLMES: There is a small presence that is in that great hall. The press pool that traveled with the White House was given an option, or at least some of us were given an option, to go there. There are increased rules, obviously, in China when it comes to the press. And for a lot of us, it was not going to be possible for us to actually broadcast from that location in real time, which is why there aren't a lot of networks there.

Remember, the US press pool is -- has been credentialed by the White House and by China, essentially told by the White House that these are the people traveling with the president. So you'll see some of them on the ground there. It is a handful of people but, you know, it is a small footprint that we have here among Western journalists that are on the ground.

I will say one of the interesting things I'm seeing here, too, is the body language between the two men. President Trump kind of grasping President Xi's hand when they were shaking hands, showing a lot of familiarity. I mean, President Trump is one who really kind of dotes on this relationship. He's often praising how close they are, how they get along. And you can see him really living that in real time with President Xi, showing that closeness. And, you know, he is not somebody who really shows a lot of affection. He was sitting there patting his hand, so that was an interesting moment.

You can see here now, President Xi is shaking hands with the delegation that traveled with President Trump, including some of his top aides, his son, Eric Trump, Lara Trump, all of them waiting there to meet the Chinese president.

PHILLIP: Yes. And if you were looking closely at that second row, behind that first row of US dignitaries, what you were seeing there were a lot of American business leaders, including Apple's Tim Cook and others. But as you noted, the first row included, you know, the Secretary of State Marco Rubio and other members of the President's cabinet, as well as his son, Eric Trump, Lara Trump and James Blair, who recently left the White House to run the President's political operation. So a lot of familiar faces in that line there.

As we're listening to this, Xochi, can you weigh in a little bit on what Kristen was just saying about that body language? I mean, it does strike me that we have seen the President in moments like this not necessarily with Xi Jinping, but that Alaska summit with Putin kind of had a similar vibe.

XOCHITL HINOJOSA, CNN POLITICAL COMMENTATOR: Yes, this is a lot of pageantry, and this is exactly what the President likes. They're playing to President Trump. They understand that he is going here, as you had mentioned, with a weak hand. He's going here at a time when there is a war that he cannot finish, when the economy is not doing well, when gas prices are up.

Donald Trump is going there not in the strongest position possible. And so, they're very smart to kind of see here -- what you're hearing the fireworks, you're hearing the shots and all of this stuff. And this is exactly what Donald Trump likes. He likes the red carpet.

This is helpful in a negotiation where you're negotiating with Trump to kind of get to his ego in these, you know, the pageantry and stuff.

PHILLIP: And, you know, the Chinese are very good at this. They are, in Trump's first term, I remember he did a similar trip to China, and he was absolutely wowed by the way that they received him. And he came back gushing about it for days and days.

And so there is -- there's a lot of showmanship that's going to be happening here as the two sides try to kind of soften each other up for what could be pretty difficult conversations. But make no mistake about it, China is intent on getting what is in their interest. And I wonder, Jason, if you think that the United States is in a position to get what we need out of them right now.

JASON RANTZ, RADIO HOST, SEATTLE RED: I mean, yes, it depends on what they're going to make is the key piece here. Obviously, Iran plays a big role and we would like to see China get a little bit more involved as much as the conversations were weakened going into this. Let's also be clear, China is also in a weakened position right now economically. They rely on an open Strait of Hormuz.

This is an economy that's based on exports. Eight of their top 20 countries that receive the most from China are cutting back on how much they're taking in. When your economy is based on razor thin margins, because, frankly, you're putting out a lot of cheap garbage products, you're hurting right now because of the rise of energy costs.

That's a key piece that the President is also going to push here. But beyond that, obviously, you're coming in with a lot of business interests. And we want to make sure that China is open to American business interests without giving too much in return.

PHILLIP: Want to respond to that?

[22:10:03]

METZL: Yes. So we need to advance, obviously, American interests but we need to make sure we're not there as supplicants. China is in a tough position because of the war in Iran, but China and Iran are traditionally able to withstand more pain than we are. And so China has massive oil reserves, and Iran has withstood the more than a month of bombing, and they're still standing, and they still have a lot of their munitions. And they've shown that they're willing to go to the mat.

And so President Trump is in a very difficult position because he can't afford to lose in Iran. But the level of escalation is going to have to be pretty significant, and it won't be bombing these missile sites. He's going to have to take aim at some of the oil and gas sites in Iran. But if he does that, that's going to cause a lot of retaliation and lead to higher inflation in the United States.

So President Trump is boxed in a lot of ways. He's trying to find wiggle room. Maybe this visit can help that but that's why the stakes are incredibly high. And as I said before, Americans, Democrats, Republicans, Independents, we should all be rooting for President Trump. We want President Trump to succeed. We don't want him to give away the shop.

We don't want him to make unnecessary compromises on Taiwan. It's great. We're going to get purchases of American soybeans and planes, but in exchange, we have to very aggressively support American interest.

RANTZ: The kids like what you were just saying.

PHILLIP: We're just going to listen in for just a second here. I mean, this is a pretty extraordinary image of young children.

METZL: I don't think it's sincere. I think these kids were put up to it.

PHILLIP: Something tells me that they were strongly encouraged.

HINOJOSA: I thought this is all organic. Everyone just happened to be here at the same time.

PHILLIP: We'll listen in for just a moment and watch this moment.

METZL: These kids aren't wearing traditional ethnic costumes of the different ethnic communities in China that are all being suppressed.

PHILLIP: You know, to Jamie's point just now, I mean, it is very interesting, Lydia, the rhetoric around China from this president is pretty harsh, and not only on the trade issue, but even on the issue of their treatment of ethnic minorities and other things. But the visuals of this moment suggest a different kind of relationship. And you might be confused that -- if you weren't sure what the President's position was on this rival nation, where he stood, because this is the kind of relationship visual that you might expect from a close ally, not from a strategic rival.

LYDIA MOYNIHAN, CORRESPONDENT, NEW YORK POST: Yes, obviously, we don't have a lot of substance, if at all, in these conversations. It is just symbolism at this point. But the symbolism would suggest that they are eager to make some kind of deal. And as Jason mentioned, you know, they're not in a great position either.

You know, I know they have vastly more oil reserves but, look, their net import of oil is down towards 20 percent. This is not an economy that is in a strong position. They've been facing a real estate crisis for five years. They need to export all of these goods domestically. Demand is not what it was.

And so, as much as we want this war to end, look, 50 percent of their oil comes from the Middle East. So I think, frankly, in this moment, there might be more to be aligned on. Of course, the tech piece of this is huge. Trump brought a huge coalition of business and tech leaders, and China is desperately trying to get our AI chips.

They need that capacity to continue to grow their own economy. We're in an AI race head to head with them, and they recognize they need Nvidia, they need some of these microprocessors. And hopefully that's a huge point of leverage that Trump stands firm on because there's been a ton of IP theft. We need to make sure that our companies are protected in that regard.

PHILLIP: The, Ana, the Washington Post had a pretty big report today based on some intelligence sources that say that there's a US analysis that details that China is exploiting the war in Iran to maximize its advantage over the United States across military, economic, diplomatic, and other fields. And that actually includes their efforts to kind of stretch their soft power -- their hard power and their soft power.

They've been providing weaponry to Gulf states. They've been supplying emergency oil supplies to other parts of the world. So whatever -- however weakened they are, they've been using what power that they have to exert influence around the world. And that's the backdrop of this visit as well.

[22:15:07] ANA NAVARRO, CNN SENIOR POLITICAL COMMENTATOR: And I also think the fact that it's Trump going there is something that they are exploiting. The symbolism of Trump being in their territory is a win for them. But, I mean, I want to talk about something that I think has been grossly underreported and I want to shed some light on.

So, yes, Trump is there with some of the biggest tech leaders and business leaders in America. People like Tim Cook, like Elon Musk, the head of Nvidia, the head of Boeing. And, you know, people always wonder, well, why are these guys at the front row swearing in? Why are they contributing to the ballroom?

Why are they contributing? It's because of this, because of the access, because they get to fly on Air Force One. But there is also another person that is in this official delegation, and that was on Air Force One, and that's Brett Ratner, who was the director and producer of the Melania movie.

But let us remember, Brett Ratner had been basically banished from Hollywood in 2017 because there were very serious sexual predatory allegations against him. His name is all over the Epstein file because of his association with Epstein. And so because, I guess because he volunteered to do that documentary on Melania, that Amazon allegedly paid $40 million for, he is now being brought back and rehabilitated by Donald Trump.

I find it appalling, appalling. And I urge people to go look up the women, some of the biggest names in Hollywood who spoke up against the sexual harassment and sexual acts of Brett Ratner that included things like masturbating in front of them in a trail, that it horrible, horribly, horribly disturbing allegations.

And there he is as part of the official US delegation flying on Air Force One on our dime. I find that appalling.

PHILLIP: I want to go back to Kristen Holmes. She's on the ground in Beijing right now. Kristen, what are you seeing?

HOLMES: Yes. I mean, Abby, one of the things that Ann was just saying about this kind of power play that President Xi has in this moment with President Trump coming to China. For President Trump, he wants the pomp and circumstance but we're hearing on the ground here that this really is a perception.

The Chinese believe, or at least many officials believe, that they are now saying that China has won the trade war because President Trump has come here instead of President Xi coming to American soil. It's unclear if that's something that the White House actually thought about before putting this trip together to have President Trump coming here before President Xi made it back to America, which of course they have said is going to happen later this year. So there is a perception of all of this.

And I do want to talk about briefly the Iran war. And you know, we are hearing that both sides are not in a good place. But one thing is clear, President Trump has two big cards or two big chips that he can play. One of them, Lydia was mentioning that is the tech. We know China wants to have less restrictions on US tech.

The other is Taiwan. President Trump knows that President Xi wants to either suspend or delay, or stop any kind of support from the US to Taiwan. Those are the two big bargaining trips that President Trump is going into this meeting with. And yes, he is going to try and sell this idea that the Strait of Hormuz being closed also is bad for China, but we also know that they have reserves and they can likely outlast any kind of economic slave suffering on that.

Now, President Xi, he's going to hold an enormous amount of leverage in here. One of the things that we're not talking about is the fact that President Trump needs a favor from President Xi. That favor is to reach out to Iran, its close ally, and essentially ask them or pressure them to reopen the Strait of Hormuz and even come to a peace deal. The big question now is what does he want in exchange for that?

What does he want in exchange for that when it comes to Taiwan? What does he want in exchange for that when it comes to business deals? That is a big ask. And what is he going to use President Xi as leverage to get what he needs out of this when President Trump comes to him to ask this?

PHILLIP: Yes, it's such a good point. I mean, I think that obviously nothing is going to come for free in this relationship, especially since, as Kristen pointed out, the Chinese want reductions in those restrictions against their high tech imports, and removing Chinese companies from sanctions list. They want the United States to back them up on Taiwan. Some of those things they may or may not get.

But, Jamie, there was also a kind of this -- I'll read you this quote from the former president of the European Union's Chamber of Commerce in China. He says, the US is fighting without winning and China is winning without fighting. What do you think about that sentiment?

METZL: Yes. So far that's the case. I mean, President Trump could have gone to Beijing right now with the different scenario of having one in Venezuela, and then had there been a quick win in Iran, and then the warships on their way home would have stopped in Cuba, and then President Trump would have been in a very strong position.

[22:20:15]

Now, the Chinese feel like they've won on trade not because Trump is there, but because Trump started this term saying we're going to be strong on China, that the whole trade policy is about putting leverage on China. And then China fought back with restrictions on rare earth minerals, and then the United States backed off. And so, now we've angered all of our friends and allies and we have -- we are not in a stronger position with regard to China.

With Taiwan, the President had in his power to sign the 13 billion that's already been approved by Congress for arms sales to Taiwan, chose not to sign that before going on this trip. So I do think that President Trump is in a weakened position and China isn't going to bail him out in Iran. And if the President can miraculously pull out a win in Iran, which we should all be rooting for, that will help things. But I think China feels that time is on their side.

PHILLIP: All right. Next for us, we are moments away from that face to face sit down. We're going to bring you those remarks live. Plus, back here at home, Republicans are telling everyone to just relax when it comes to high gas prices, but they didn't strike that tone during the Biden years.

Stay with us. We'll be right back.

(COMMERCIAL BREAK)

[22:25:55]

PHILLIP: We're bringing you live pictures from Beijing where you see President Trump there seated in a great hall with his entourage as they're preparing for a expanded bilateral meeting with President Xi Jinping and Chinese officials. We're going to be listening in as soon as this meeting gets started in just a few moments.

But in the meantime, let's come into the room here. And, Jason, as we're getting ready to listen in here, this is where there's going to be a little bit of a spray at the top meeting. We're going to probably hear from them for a couple of minutes, but it's also where the real work is going to be getting done in terms of the two leaders meeting face to face, talking through some of those issues that we were just discussing in the last one --

METZL: Yes. You'll get some pleasantries and then when the cameras aren't there, you'll get the actual conversation, you know, the conversation of Taiwan is going to come up. There's been no indication that the president of this administration is going to change its stance when it comes to Taiwan. And again, because you've got those business leaders there, that's going to also be a big piece of this.

There's also back here at home, it's not just about AI, it's also about farmland. It's also about our farmers and making sure that we're, you know, getting our products into the Chinese market and being treated a little bit more fairly. Same time, it's hard to ignore the big news this week, which we had a mayor who was a Chinese spy apparently, and that is that underlying threat is going to continue to be here.

And we have to take a harsher stance so that they know we're not going to accept anything like that. And I expect that this President, I expect that this -- Secretary Marco Rubio is going to hold the line.

PHILLIP: Herbie Ziskend is with us at the table. Herbie, when you look at this image and you see all the things that are on the table in terms of the agenda, what's your expectation for this visit and this meeting?

HERBIE ZISKEND, FORMER WHITE HOUSE PRINCIPAL DEPUTY COMMUNICATIONS DIRECTOR: Well, I've done these trips with a president on these international trips, especially including in Asia. And there's weeks of anticipation, preparation. And then when the pool spray finally ends, when the cameras leave the room, there's a chance for finally some frank conversation, some back and forth that's authentic between the leaders, between the teams. It can be candid.

And so, a lot of this work is already done. A lot of the deals that will get announced are already baked, but there is an opportunity when the doors are closed for 60 minutes, 90 minutes for there to be, you know, some surprises just based on the frank back and forth. And that's what you get in these closed door sessions.

PHILLIP: Yes. I also think, you know, as someone who's covered President Trump for a long time, these face to face interactions, the body language and even his comments in sprays like this can really tell you a lot about how he's entering these meetings.

I think we might be able to listen in here. This is President Xi Jinping. Let's listen.

XI JINPING, CHINA PRESIDENT (through translation): And find the right way for major countries to get along well with each other in the new era. Mr. President, I look forward to our discussions on major issues important to our two countries and the world, working together with you to set the course for and steer the giant ship of China-US relations.

So (inaudible) 2026 a historic landmark year that opens up a new chapter in China-US relations. I will pause here and hand over to you, Mr. President. Thank you.

DONALD TRUMP, US PRESIDENT: Well, President Xi, I want to thank you very much. First of all, that was an honor like few have ever seen before. And I think I was particularly impressed by those children. They were happy, they were beautiful.

The military is obvious, it couldn't be better, but those children were amazing and they represent so much. And I know they represent so much to you. You and I have known each other now for a long time. In fact, the longest relationship of our two countries that any president and president has had. And that's, to me, an honor.

We've had a fantastic relationship. We've gotten along. When there were difficulties, we worked it out. I would call you, and you would call me. And whenever we had a problem, people don't know.

Whenever we had a problem, we worked it out very quickly. And we're going to have a fantastic future together. I have such respect for China, the job you've done. You're a great leader. I say it to everybody. You're a great leader. Sometimes people don't like me saying it, but I say it anyway because it's true. I only say the truth. And I just want to say, on behalf of all of the great delegation that we have, we have the greatest businessmen, the biggest and, I guess, the best in the world.

We have amazing people, and they're all with me. They, every single one of them, we ask the top 30 in the world, every single one of them said yes. And I didn't want the second or the third in the company. I wanted only the top. And they're here today to pay respects to you and to China. And they look forward to trade and doing business. And it's going to be totally reciprocal on our behalf. So, I really look very much forward to our discussion. It's a big discussion. There are those that say this is maybe the biggest summit ever. They can never remember anything like it. It's, can say, in the United States, it's -- people aren't talking about anything else. But it's an honor to be with you. It's an honor to be your friend. And the relationship between China and the USA is going to be better than ever before. Thank you very much. Thank you.

(LIVE COVERAGE ENDS)

ABBY PHILLIP, CNN ANCHOR: All right, and now the real work begins. We just heard from President Trump and China's President Xi Jinping. I'll start with President Trump because I mean, as I was saying right before he spoke, he says a lot in these meetings in terms of his disposition. He said that they are friends. He called Xi Jinping a great leader. He said it was an honor.

The honor cordon that he experienced was like few he had ever seen before. And Xi Jinping was a little bit more I think circumspect, but he suggested that this could be the beginning of a new chapter for U.S.-China relations. And again, for people who don't remember, President Trump often describes China as ripping the United States off, particularly on this trade issue. So, will this be a new chapter?

XOCHITL HINOJOSA, CNN POLITICAL COMMENTATOR: Well, and he has always said that he wanted to be tough on China. And then we have seen that he is not so tough on China. And I think the big question is what do Americans get out of this meeting? He said -- Donald Trump said everybody is watching. People are watching to see what we get out of it. And there are American business leaders.

But what Americans are also seeing is that the wealthiest men in the world are, you know, are in the country, are are taking a trip on Air Force One to China and what do they get out of it when gas prices are high? One of the things that we see from the MAGA base and what they say often is that they would like to see the President here in the United States talking about lowering prices, actually working to lower prices and doing less of the pageantry that we saw and pulling out the red carpet and all of these things.

And so, there's already been a frustration with his base on not delivering some of these promises here abroad and yet going to a place like China to do this, to unclear what we would get out of it at a time when America is so weak.

PHILLIP: It also strikes me that there are limits to, in this particular relationship, to how much buttering up the other side is really going to help you here. I mean, think President Trump relies very heavily on the nature of his personal relationship with these leaders, but China's playing the long game. And Xi Jinping has been leader for a very long time at this point, and he's not particularly swayed by nice words, it seems, at least from my vantage point.

ANA NAVARRO, CNN SENIOR POLITICAL COMMENTATOR: Maybe Xi isn't, but Donald Trump is certainly good for buttering up, right? He is highly -- (CROSSTALK)

NAVARRO: He loves the pomp and circumstance. He loves the receiving lines and the children and the pompons and the red carpets and the more the better for him. Look, there are actual things that need to happen here and that we need to see results. One of them has to do with soybeans. Nobody has felt the effect of the tariffs and the Trump inflation and the problems, the economic problems that we're having as much as the farmers in the United States. And in particular, the soybean farmers.

[22:35:01]

As a result of the Trump tariffs, China, which was the biggest importer of soybeans from the United States, basically stopped importing soybeans from the United States. And that has caused incredible distress and economic pain among those farmers.

(CROSSTALK)

PHILLIP: And they started getting it from Argentina, who then subsequently --

NAVARRO: From Brazil.

PHILLIP: From Brazil.

NAVARRO: And Argentina.

PHILLIP: And Argentina, who we then subsequently offered a bailout. So, it is a, you know, I think that this has been a kind of lesson in hardball for this president. He attempted to slap these, frankly, astronomical tariffs on China last year, back down on them several times. But then China fought back in ways that are still hurting Americans to this day. And I think it just illustrates how difficult this relationship is. It's not just something where you can pull one lever and win. There's a lot more to it than that.

LYDIA MOYNIHAN, "NEW YORK POST" CORRESPONDENT: Yes, and Marco Rubio earlier today said he's very clear-eyed about that. Look, he recognizes that China is a nation with hundred-year ambitions that extends far beyond a two-year or four-year cycle. And so, I think they know what they're up against. But I also think that Trump has a lot of cards. He recognizes this is the largest economy by far, $32 trillion GDP that the U.S. has, China with just $20 trillion.

Xi Jinping, meanwhile, is kind of culling some of the military ranks. There's a lot of angst internally in China. Again, the debt, I know America has a lot of debt, but the household and corporate debt actually exceeds in China what we have here. And so clearly, both sides recognize the power that the other nation represents and they're eager to make something work here.

HERBIE ZISKEND, FORMER WH PRINCIPAL DEPUTY COMMUNICATIONS DIRECTOR, BIDEN ADMINISTRATION: Can I jump in on that? That's an important point. I want to just say, when you embark on these trips, the most important moment is actually before you take off. Are you arriving in a position of strength or a position of weakness? The President of the United States is wheels down in Beijing from a position of weakness, real weakness. He's at 70 percent disapproval on the economy.

Inflation just ticked up the highest amount in three years. He's got a war that's roiling energy markets. He needs the Chinese to help him on that front. And as President Xi looks across the table at President Trump, he sees a president who's in a weak position. And so, there's a lot of work done that needs to be done for this White House that's traveling to get back to just the baseline. And I think we're seeing the challenge of the President's buttering up President Xi because he's got a lot of work to do.

MOYNIHAN: And China is also buttering up Donald Trump. I mean, it's interesting that the red carpet that they rolled out, they didn't do that for Obama. In fact, they actually sent the vice president to greet Donald Trump. So, they're pulling out all the stops, showing a lot of pageantry. And just as much as Donald Trump is buttering up Xi Jinping --

HINOJOSA: What is Trump going to give for that? I mean, that is the question.

MOYNIHAN: What is China going to get for that? Look, no one knows how this is going to end up. But I just think to say that somehow we are at a disadvantage just feels like PRC talking points because you look at the reality of what China is facing. And it's interesting. There was actually an op-ed in The Times this weekend.

A gentleman at the fellow at CFR, Mr. Huang, who said that, "I see a dangerous overconfidence taking hold in my native country. This belief is partly a defense mechanism to help Chinese people cope with their own problems, slowing economy, a collapsing property market, high unemployment, and widespread sense of uncertainty." So, I think we need to be honest that there are things that America needs, but there's also things that China needs out of this.

PHILLIP: Yes. Let me go to Kristen Holmes. And Kristen, one thing that we're discussing here is the President, how he is going into this meeting. I think there is no question that from a public opinion perspective, he is at a low point. And there's been a Pew Research poll recently that showed that just 39 percent of Americans are confident that he's going to make good policy decisions when it relates to China.

I wonder how you see the domestic situation here in the United States weighing on this trip to China. And as I noted earlier, I actually am interested to see his key political adviser, James Blair, not just on the ground, but in that bilateral room with the President, as well. What do you make of all of that, Kristen?

KRISTEN HOLMES, CNN SENIOR WHITE HOUSE CORRESPONDENT: Yes, so we'll start with James Blair. So, he hasn't quite left the White House yet. He's leaving at the end of May. They made the announcement. But keep in mind that the chief of staff, Susie Wiles, is still being treated for cancer. She is not on this trip. And James Blair has really become her right hand.

I mean, this is somebody who has become somewhat of a surrogate. She delegates to him. She is not known for delegating. And one of the things that she does with James is delegate to him. So, that is likely why he is there. In fact, recently, she told me in an interview that when she needs something, she knows she can go to James and never have to worry about it again.

[22:40:00]

So, that's likely why James is there. But in terms of the broader picture, I do have to take issue with this idea that President Trump is buttering up President Xi. And President Trump is saying this because he fundamentally believes it. We've seen him go into negotiations where he needs something before and he almost insults the person that he is sitting down across from. He's not saying this because he feels like he needs to butter up Xi. He truly believes that President Xi is a great leader.

We know that he believes that strong men are great leaders because he believes that they get things done. It's not just to butter him up because of these negotiations. In fact, I've never actually seen him kind of try to suck up to someone before and say something that he didn't fundamentally believe. Now, in terms of diplomatic and domestic policy, they know that they're in trouble. The White House knows that they're in trouble.

They know that there is an issue with these gas prices. They want to get through this war in Iran so that they can start talking about the midterms. We know Susie Wiles, James Blair, they have all raised this to him in terms of the politics of going forward, getting closer and closer to these midterms. They won back in 2024 because not only could President Trump, but his entire team could tap into the needs of the American people in a way Democrats couldn't, which was American people were suffering because of inflation, and they felt the cost of living was too high, and they were looking for a change.

They know, going into the midterms, that that is still how the American people feel, which puts them at a disadvantage. So, they are trying to get away. President Trump has been trying to find an off- ramp in this war, but it's just not working. Iran is withstanding this. They are -- we are now at a point in which not only is there not an off-ramp, but President Trump is contemplating going back in militarily, at least privately.

So, all of this being said, President Trump does have a lot of hurdles he has to get over in these conversations with President Xi.

PHILLIP: Kristen Holmes, thanks for that. And Jason, as you just heard her say, I think -- and I think Kristen is right about this. Trump generally says what he believes. I think it could be both things that both you use that compliments to butter up the other side. But also, the idea that he fundamentally believes that Xi Jinping is a great leader, a dear friend, all of those things. How does that land with you? JASON RANTZ, RADIO HOST, SEATTLE RED: He has respect for him and I

think that you can, it can go both ways. If you have too much respect for someone you're negotiating with you might give too much. They also, it also means that you might actually have more open and honest, frank conversations about what it is you're asking for and you hope that it gets reciprocated, that kind of honesty and that kind of trust.

Again, it feels like there are some folks who going into this, not just predetermining the outcome, which will be a total failure, but almost setting it up for that. And I think that's the wrong way to talk about this. I think it's the wrong way to view these. The end of the day, we want what's best for this country. They want what's best for their own. There's going to be some compromise in between. We'll see what that actually is.

But to go in here almost rooting for failure or waiting for it so you can pounce on that, I think that is a huge turnoff for the American people. And I think that everyone should be singularly focused on one thing, the best outcome for us, whatever that actually means in --

(CROSSTALK)

HINOJOSA: And no one is rooting for failure.

RANTZ: There are some people who rooting for failure.

HINOJOSA: I think, for the most part, I think people are pointing out the truth. And the truth is, is that our country is not in a strong position at the moment going into these negotiations and these talks. And that is not for failure.

(CROSSTALK)

HINOJOSA: That is not rooting for failure. That is speaking the truth.

PHILLIP: All right, we'll leave it there. Next for us, we're going to talk about how Republicans talked about gas prices under President Biden versus now. The Trump family brand isn't doing well as well down under, the developer scrapped plans to build a new Trump Tower, saying that the brand in Australia is toxic. We'll discuss.

(COMMERCIAL BREAK)

[22:48:19]

PHILLIP: Tonight, Republicans have a new message for Americans concerned about rising gas prices. Just relax.

(BEGIN VIDEO CLIP)

REP. BUDDY CARTER (R-GA): Look, this is not going to last forever, and gas prices are going to go back down.

MANU RAJU, CNN CHIEF CONGRESSIONAL CORRESPONDENT: How do you know that?

CARTER: Well, I know that because this war is not going to last forever.

REP. BERNIE MORENO (R-GA): The gas price situation is tough, but I think that's going to be resolved in the next few weeks. I think by, call it Labor Day, it's all in the rear view mirror.

REP. TROY NEHLS (R-TX): The fact of the matter is, is everybody relaxed, few prices will go down, Iran's going to end very, very soon.

(END VIDEO CLIP)

PHILLIP: You might recall this is the same party that attacked Joe Biden throughout his presidency, accusing him of inaction over high gas prices.

(BEGIN VIDEO CLIP)

SEN. RICK SCOTT (R-FL): He's not being honest about inflation. Inflation is picking up. Look at gas prices. Up over 70 cents a gallon since he got elected.

REP. MIKE JOHNSON (R-LA): The national average price for a gallon of gas reached $4.32 on Sunday. And yes, that is the highest price in U.S. history.

What is so hard about just being honest with the American people? President Biden should accept responsibility for the past year of rising prices.

SCOTT: We see people postponing their vacations. So, this is having a devastating impact to normal families all across my state. The Biden administration is just tone deaf.

SEN. JOHN CORNYN (R-TX): In standard fashion, the Biden administration has tried to blame someone else. Mr. Biden has implausibly blamed Vladimir Putin for the high price of gasoline.

(END VIDEO CLIP)

PHILLIP: You heard Rick Scott there saying the Biden administration was tone deaf and he was right. So, are Republicans doing the same?

MOYNIHAN: Yes, I don't think this is something to be glib about. This is certainly sobering and I think President Trump should have an honest conversation. We are in a war time like other leaders do and acknowledge what's going on and continue to make the case to the American people that it's worth it because there is a serious cost.

[22:50:07]

I also think there are things to be optimistic about. We are deregulating. UAE is coming out of OPEC, which could mean less of a monopoly on that front. And I also am going to say in the land of the blind, the one-eyed man is king. Republicans are not in a great spot but I don't look at Democrats and think that they have it tied up for midterms either.

ZISKEND: Can I say, you know, the -- sow the scars from this, but when you're dealing with an inflationary context, you have to show that you're going to take affirmative steps to address inflation. The President is exacerbating inflation. His tariffs are a price hike. The situation in the Middle East is leading to an energy crisis. And his biggest signature achievement was reducing health care benefits, cutting SNAP benefits to do a tax cut.

So, when he's contending with inflation, it's tough because his policies are worsening it. And then to hear Republicans say, just get over it, just deal with it, it's not where people are in this country. It's not where the numbers are.

(CROSSTALK)

NAVARRO: And listen. It's true. It is true. And it probably is part of the reason that it cost Democrats the election. It is true that Democrats were slow to acknowledge and recognize the pain that Americans were going through. But what Democrats were not doing -- what Joe Biden was not doing at the same time was repainting the pool for $15 million and walking around with a rendition of a ballroom that's not going to cost $1.5 billion -- billion with a B, and unveiling gold plated statues of --

(CROSSTALK)

RANTZ: He renovated the Situation Room and he spent tens of --

(CROSSTALK)

NAVARRO: And you know, so the tone deafness, the Secretary of Transportation wasn't on a seven month road trip with his nine children for a TV show.

RANTZ: Tone deafness is not --

NAVARRO: So --

RANTZ: You know that he was not on a road trip for seven months. You know that that is factually inaccurate. Come on.

(CROSSTALK)

NAVARRO: He has been on a road trip during those seven months.

(CROSSTALK)

RANTZ: A couple of days at a time. He was not on for seven months. That's just not fair and not accurate.

(CROSSTALK)

PHILLIP: He was filming a reality show, "Road trip."

NAVARRO: Exactly. PHILLIP: Road trip reality show.

RANTZ: A couple days.

(CROSSTALK)

PHILLIP: Over the course of seven months.

NAVARRO: While TSA agents aren't getting paid.

PHILLIP: I'm not sure that makes it better.

RANTZ: It does make it better. Come on.

NAVARRO: $5.99 a gallon. While we are having all sorts of FAA issues, while there's cruise lines with viruses.

(CROSSTALK)

NAVARRO: And that is what --

(CROSSTALK)

RANTZ: My point is, you don't have to make something up to make a point. I think you can make very valid points here.

(CROSSTALK)

NAVARRO: I'm not making it up. During the seven months, he has taken days off, during the seven months to go on a road trip for a TV show. Which part of that is inaccurate?

RANTZ: Well, you said he was taking off seven full months.

NAVARRO: No, didn't say he was taking off --

RANTZ: That's exactly what you said.

MOYNIHAN: I think he was allowed to see his nine children every month for a couple days.

UNKNOWN: Exactly.

(CROSSTALK)

NAVARRO: And tell America to go on road trips while the gas is $5.99 a gallon.

PHILLIP: I guess at the end of the day, if what we're talking about is the transportation secretary filming a reality show, it's probably not a good sign for this administration.

RANTZ: I'm fine with the secretary celebrating the 250th anniversary of country.

PHILLIP: We'll leave it there. The Trump Tower that has been planned in Australia is no more. The developer says the brand is too toxic for this. We'll discuss.

(COMMERCIAL BREAK)

[22:57:26]

PHILLIP: Plans to build a Trump Tower in Australia have been scrapped because the brand is apparently toxic. The developer has cited the Iran war and growing political divisions as reasons for the brand's unpopularity among Australians. This seaside 91-story luxury tower was built as Australia's tallest when the Trump Organization announced it three months ago. The Trump team is responding, accusing the developer of blaming world events to distract from his own defaults and failures.

I guess it's not entirely surprising, Xochi, that this would be a mixed bag. The Trump name, which is a huge part of the brand, would be a mixed bag.

HINOJOSA: It is a mixed bag, but for the most part, Trump is benefiting off the presidency. He's not concerned what it seems like to run the country. Instead, he seems like he's running a family business from the White House. We just saw Eric Trump on the trip to Beijing, where he has been chasing business in China for quite some time. We know that Ron DeSantis is giving Donald Trump land in Florida right now.

NAVARRO: Don't remind me.

HINOJOSA: We know that he has benefited off the presidency every chance that he gets. And he has been smart about it. I have to give him credit. I think the first term he learned a lot about what to do and what not to do and how he can benefit from the presidency for his own personal gain. And they are now using every lever, every foreign trip, everything, all of their international contacts to end up making money.

PHILLIP: On that Florida land, they're being sued by locals to block it. "The plaintiffs say that these statements make it clear that the President intends to monetize the skyscraper, generating significant profit for himself and his family." This is supposed to be a Trump library. It looks like an apartment building, a skyscraper apartment building.

NAVARRO: It's incredibly valuable land in downtown Miami. And you know, there's all sorts of laws that have been changed in Tallahassee in order to give them the protection to be able to do whatever the hell they want with that land, monetize it, build, you know, mixed use residential and commercial as part of this.

I don't even think they're calling it a library. I think they might be calling it a presidential center or trying to get through some loophole so as to be able to monetize it. And yes, a lot of the Miamians, including myself, are pretty pissed off about it.

PHILLIP: So Jason, they're not making many attempts to distance the Trump organization from the Trump presidency in this term. [23:00:02]

RANTZ: No, I mean, it's the brand. I don't know if you can. And if they tried to do that, I think people would, in, you know, good faith and bad faith, say, well, it's obviously doing something that they're not.

(CROSSTALK)

ZISKEND: It's not the brand.

RANTZ: I wouldn't say that.

ZISKEND: It's $28 million for documentary. It's $90 million in shakedowns from tech and media companies.

(CROSSTALK)

ZISKEND: It's $900 million crypto. This is not the brand. This is a business.

(CROSSTALK)

RANTZ: There should be more paintings from --

(CROSSTALK)

PHILLIP: We got to leave it there, everyone. Thank you very much for being here. Thanks for watching "NewsNight." "Laura Coates Live" starts right now.