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Trump En Route To China For Talks With Xi Jinping; War With Iran Expected To Dominate Trump-Xi Talks; Pentagon: Iran War Has Cost U.S. $29 Billion So Far. Aired 4-4:30a ET

Aired May 13, 2026 - 04:00   ET

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

[04:00:10]

POLO SANDOVAL, CNN ANCHOR: Hey, everybody, welcome to CNN Newsroom. I'm Polo Sandoval live in New York. 4:00 a.m. in Washington, 4:00 p.m. in Beijing. And Donald Trump is en route to China for a high stakes summit with Xi Jinping, trade, Taiwan and the war in Iran, all top items on the agenda.

Plus, British Prime Minister Keir Starmer vowing to get on with the governing, defying calls for him to step down.

And forecasters are warning that the powerful El Nino may be brewing and it could trigger some extreme weather events this year.

UNIDENTIFIED MALE: Live from New York, this is CNN Newsroom with Polo Sandoval.

SANDOVAL: U.S. President Donald Trump, he is due to arrive in Beijing in just a matter of hours for high stakes talks with Chinese leader Xi Jinping. The war with Iran certainly expected to be top of the on the agenda. And before leaving, President Trump said that he does not think about the financial situation of Americans, only that Iran should not get a nuclear weapon.

The President says that he will have a long talk with his Chinese counterpart about the war with Iran. But he also downplayed the need for China's help in ending the conflict.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Do you think President Xi can help and contribute to a deal with Iran?

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: He could. I mean, it might be. Yes. I don't think we need any help with Iran, to be honest with you. They're defeated militarily, and they'll either do the right thing or we'll finish the job.

(END VIDEO CLIP)

SANDOVAL: All right, let's take you live now to China's capital and CNN Beijing bureau chief, Steven Jiang as he continues to monitor the situation there. Steven, so as we wait for Air Force One to touch down in a few hours here, just bring us up to speed on some of the other items that will be top of the agenda when the presidents meet.

STEVEN JIANG, CNN BEIJING BUREAU CHIEF: That's right, Polo. The trade and economic issues definitely dominating this agenda. One sign of that, of course, is less than 24 hours before the two leaders meet. Scott Bessent, the U.S. Treasury secretary, still in South Korea talking with his Chinese counterpart and presumably trying to hash out some last minute deliverables for the summit.

Now, one thing a lot of people have said is this kind of summit really doesn't and are unlikely to change the overall trajectory of this relationship, which is, of course, increasingly competitive. So in a sense, both sides are trying to buy themselves more time so they could address their own strategic vulnerabilities. Now, for the U.S., of course, that includes supply chain risks, especially on things like rare earths, which, of course, is essential in weapons production at a time when the U.S. is fast depleting its munitions because of the war with Iran.

And China obviously dominates the global supplies of rare earths. Now, for China, Xi Jinping has repeatedly said he wants to achieve self- reliance in key technologies, basically trying to free China from what he describes as U.S. chokeholds in technology to ensure Chinese national and economic security. So when it comes to Iran, as you just heard the President say, he mentioned he doesn't need China's help.

But still, this issue is very going to -- is very much looming large. And he is all but certain to ask Xi Jinping to do more to pressure Iran, of course, one of China's most important allies and partners in the Middle East, with Beijing really providing Tehran with an economic lifeline. China may actually be just waiting for that in-person ask before they do more so they could tout any potential positive result as a deliverable from this summit as well.

So in the end, it's not hard to foresee China agreeing to spend billions to buy more American agricultural products or Boeing jets so they could offer President Trump some deliverables ahead of the crucial U.S. midterm elections, because at the end of the day, both sides are very much incentivized to extend their tariff truce first reached last October to prolong this rather fragile stability in this very complex relationship. Polo?

SANDOVAL: Steven Jiang with that live report ahead of President Trump's arrival. Thank you, Steven.

For more on the upcoming trip of the President to China, I'm joined by Bonny Lin. She's the director of the China Power Project and also senior advisor at the Center for Strategic and International Studies. Welcome, Bonny. Thank you so much for joining us.

[04:05:03]

BONNY LIN, SR. ADVISER & DIRECTOR, CHINA POWER PROJECT, CSIS: Thank you for the invite. SANDOVAL: Of course. So the last time the Presidents Xi and Trump met was October 2025, avoiding a actual trade war, what was really what was dominating the agenda back then. Now it's an actual military conflict. It's certainly going to be top of mind. As you monitor this meeting, I'm curious what you'll be watching for as these two leaders meet again.

LIN: Yes. Thank you. So I think if you look at the top issues, there are at least two top issues that both sides agree on, which is, one, the continued stabilization of U.S.-China relations. That's of interest both to the United States as well as China. And part of that is being able to continue to extend the trade truce.

And then below that, as you mentioned, a top priority for the U.S. administration is getting help from China to end the conflict and war in Iran, particularly getting help from China to open up the Strait of Hormuz.

On the Chinese end, a top issue is to be able to address Taiwan with the United States, potentially getting some changes either in U.S. rhetoric on Taiwan or getting President Trump to agree to reduction or perhaps delaying arms sales to Taiwan.

SANDOVAL: How do you think that China is able to sort of strike that diplomatic balance? I mean, it's one of the main purchasers, if not the main purchaser of oil from Iran. At the same time, the Chinese certainly keep close ties with the United States. I mean, that has to be a challenge for the Chinese government to be able to strike that balance.

LIN: So I think China has already previewed what its position on Iran is last week with the Chinese Foreign Minister Wang Yi, meeting with his Iranian counterpart. During that meeting, Wang Yi made quite clear that China respects Iran's ability to have nuclear energy for peaceful uses. And China also made clear during that meeting that it opposes foreign countries or external interference or coercion of Iran.

So I think that's already staking out the Chinese ground, right? So even though China has publicly stated that it's interested, that it wants Iran to be able to open up the Strait of Hormuz, it's also made very clear it's not going to support what the Trump administration wants in terms of Iran getting rid of its potential nuclear capabilities as well as other military capabilities.

So the commonality between the U.S. and Chinese side is both sides want the Strait of Hormuz open, but I don't think China is willing to put much pressure on Iran to do so. As you mentioned, China imports about 90 percent or more of Iran's oil, and there's no indications at all from China that China is willing to decrease the purchase of Iranian oil to put pressure on Iran.

SANDOVAL: And you've touched on what was going to be my next question. Was it because of Chinese unique position as you lay out? If you perhaps see China taking on maybe a mediating position or, you know, place when it comes to trying to end the war in the Middle East, or is it likely going to continue to keep itself at as a sort of at an arm's distance from this conflict?

LIN: So China has already taken somewhat of a light mediation role by helping behind the scenes in the role that Pakistan has played to bring Iran and the United States to the table in some of the past negotiations between the United States and Iran. But I think there is a sense within China that it can't really do too much more without providing security guarantees or other types of guarantees to Iran.

So, for example, some have asked whether China would be able to take Iran's nuclear stockpile. And of course, that's something that's, from China's perspective, too far beyond what China is willing to do. So right now, I don't see China willing to put much, basically do very much more than what is already done now, which is encourage talks, at least put some effort on the diplomatic front.

It's very clear China's not willing to pay any economic costs for this. It's also not even clear that China is willing to pay much diplomatic costs. From the Chinese perspective, the United States and Israel started this war against Iran. So it's up to the United States, as well as what help we might get from other countries to stop this war. It's not China's responsibility. But of course, China is suffering economic costs from the Strait of -- closure of the Strait of Hormuz.

SANDOVAL: Yes, absolutely. Certainly adding to the urgency of getting that open is China, as well as other nations deeply affected by it, as you point out. Bonny Lin, thank you so much for joining us for this conversation. Really appreciate your time.

LIN: Thank you very much.

SANDOVAL: Now, President Trump is criticizing the media for their coverage of the war with Iran. He says they're reporting Iran is doing well militarily, that that goes against the U.S. and that it's, "a virtual treason." Meanwhile, a senior Pentagon official says that the war with Iran has cost the U.S. taxpayer $29 billion so far, and that estimate is higher than the $25 billion figure that the Defense Department provided to Congress just two weeks ago.

[04:10:21]

CNN's Oren Liebermann joining me now from Jerusalem with the very latest. Oren, with Iran and the U.S. appearing to be basically locked in a stalemate, and the ceasefire on life support, as the President put it at the start of this week, what's happening in the Middle East today?

OREN LIEBERMANN, CNN JERUSALEM BUREAU CHIEF: Well, right now it seems Iran has taken at least a temporary backseat with President Donald Trump visiting China and President Xi Jinping there. But there's no doubt it is still front and center. And I'll start right where you finished off there. The rising cost of the war now at $29 billion some 10 weeks in at this point, and that's an increase of $4 billion over the number the Pentagon gave just a couple of weeks ago.

So we are seeing the increasing cost of the war in real time. But officials have told us even that is likely an underestimate because it doesn't include the cost of repairing multiple U.S. military bases that were struck by Iran throughout the war. That number might be closer to $40 or $50 billion. In terms of Pentagon spending, that's not actually that large of a number from an organization or an agency that's requesting a $1.5 trillion budget.

The issue is when U.S. taxpayers see the Trump administration spending nearly $30 billion publicly stated on the Iran war, given the financial strain from higher gas prices and higher costs. And that's where this becomes an issue. Trump was asked about this on Tuesday and appeared incredibly insensitive to it. He was asked about the financial stress stresses that U.S. taxpayers are feeling. And he says, I don't think about Americans financial situation. I don't think about that. I think about one thing. We cannot let Iran have a nuclear weapon. That's all.

That is certainly a remarkable statement, especially as the midterms are looming large ahead. And of course, the economy is always one of the key issues. But Trump effectively saying he's not concerned or doesn't think about the financial strains and the cost of this war on the U.S. taxpayer.

In terms of Iran's nuclear stockpile and what the U.S. and Israel see as an attempt to get to a nuclear weapon. Well, even that needs some sort of solution here, whether that's a diplomatic solution that doesn't seem like it's happening anytime soon or a military solution that Trump doesn't seem to want to go towards largely potentially because of the costs on U.S. taxpayers and the rising cost of oil worldwide.

But as we have reported on this war, whether it's questions about U.S. interceptor stockpiles or the weapons it's able to provide to its allies and partners in the region or the capabilities that Iran still has left, Trump lashed out at reporters who questioned whether Iran was successful militarily. He called it, as you pointed out, virtual treason, an incredible line noteworthy for so many reasons coming from the President. Polo?

SANDOVAL: It really is. That live report from CNN Jerusalem bureau chief, Oren Liebermann. Thank you.

Well, let's get you an update now on the number of Hantavirus cases that were have been already linked to a cruise ship. That number now up to 11. Now the World Health Care Organization now says that all those cases, they are among passengers or crew and that include three deaths reported early in the outbreak. All passengers, they are now off the ship and it's headed to the Netherlands to be disinfected. The WHO says that the risk to global health that remains low.

(BEGIN VIDEO CLIP)

DR. TEDROS ADHANOM GHEBREYESUS, DIRECTOR-GENERAL, WORLD HEALTH ORGANIZATION: There is no sign that we are seeing the start of a larger outbreak, but of course the situation could change. And given the long incubation period of the virus, it's possible we might see more cases in the coming weeks. (END VIDEO CLIP)

SANDOVAL: You just heard there from the head of the World Health Organization. And more than a dozen Americans who were on the ship, they are now being monitored here in the United States. CNN's Dianne Gallagher with more from Nebraska.

DIANNE GALLAGHER, CNN U.S. NATIONAL CORRESPONDENT: The American cruise ship passenger who is currently in the biocontainment unit here at the University of Nebraska Medical Center is speaking out for the first time from that very room. Dr. Stephen Kornfeld talked to Erin Burnett on Tuesday evening from that biocontainment unit, telling her about his experience so far.

Now, CNN previously spoke with Kornfeld about what he was doing on that cruise ship. He's an oncologist who stepped up, he said, to help some of the people who were critically ill from the Hantavirus. That is in part why he is here in the biocontainment unit, because authorities wanted to do tests on those who had been in close contact with those people.

[04:14:58]

And one of his tests showed a mild positive when he was tested again. That was a negative. But U.S. officials exercising extreme caution treated him as a positive Hantavirus patient. So they used the biocontainment protocol when they evacuated him from Europe to here in Nebraska, and he went straight into that biocontainment unit.

Now, Kornfeld said he has since been tested again. Those tests went to the CDC, and they are still awaiting results. Now, we have also learned that the 15 passengers who are currently in the national quarantine unit in the building behind me here have also been offered testing for Hantavirus, and at least one of them has chosen to get those tests done.

Jake Rosmarin told CNN that he had blood work done on Tuesday for PCR and antibody testing. Now, all of these passengers are about halfway through the 72-hour assessment period at the University of Nebraska Medical Center, where doctors and nurses are interviewing them, trying to trace their close contacts, go over their steps on that cruise ship and get an idea of just what they've been up to for the past couple of weeks.

Also, they're doing health monitoring to see how they're feeling, trying to determine if they have any symptoms of the virus whatsoever, and checking their temperature a couple times a day. Now, there were two cruise ship passengers that once they arrived here in Nebraska, they were sent to Emory University in Atlanta, Georgia, because one of those passengers was starting to display mild symptoms of the virus. It was a couple.

Both the person with the symptoms and their partner were sent to Emory. But the U.S. Department of Health and Human Services said on Tuesday that the person with the mild symptoms had been tested, and that test came back negative for Hantavirus. Now, according to the World Health Organization, there are 42 days recommended in this quarantine period for these patients who are being observed right now. They also say that at this point, there are 11 cases of Hantavirus associated with that cruise ship. Back to you.

SANDOVAL: Dianne Gallagher reporting there.

And ahead here on CNN Newsroom, rising inflation in the U.S., a look at the latest data, and also how the war with Iran is driving up prices.

And King Charles soon to take center stage at U.K.'s Parliament. But just as many eyes will be on Britain's prime minister as he remains defiant in the face of calls for his resignation. We're live in London.

(COMMERCIAL BREAK)

[04:21:31]

SANDOVAL: The energy price shock from the Iran war is compounding concerns among Americans over affordability. Well, now there's new data in on inflation that is really only adding to those worries. And the latest consumer price index now showing U.S. inflation that it rose to 3.8 percent in April from a year earlier. And for the first time in three years, wages are no longer outpacing inflation rate.

And based on that latest report, Moody's Analytics finding that a typical U.S. household now has to spend about $266 more each month for the same goods and services that they had to buy just a year earlier.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: It's survival mode, and that's a mode that I haven't been used to.

UNIDENTIFIED FEMALE: For me, a financial stressor is groceries.

UNIDENTIFIED FEMALE: Everything's gone up from the beef to the eggs.

UNIDENTIFIED MALE: I'm a junior, and I missed a whole semester of school because I couldn't afford housing. I want to have a house and have a family, and you know what I mean? Like my parents did.

(END VIDEO CLIP)

SANDOVAL: We are seeing higher prices across the U.S. economy, especially at the pump since the start of the war with Iran. AAA reporting that the national average price for a gallon of regular gas, that's now up to $4.51 and rising. And new CNN poll also showing that consumers have increasingly bleak outlooks on the U.S. economy. Seventy-three percent now saying that they believe current economic conditions in the country are poor. Only 27 percent describing the conditions as good. And affordability, that is one of the biggest concerns, as you see here. Seventy-seven percent of the folks polled say that President Trump's policies have increased their cost of living. Sixteen percent say that they've had no effects. And only eight percent say that costs have decreased for them.

And in a little more than two hours, Britain's King Charles is expected to deliver a speech during the state opening of Parliament. It's a long-standing tradition that lays out the government's legislative plans for the months ahead. But this year's ceremony will be unfolding against a backdrop of political turmoil. Prime Minister Keir Starmer is resisting calls for him to resign, many of them coming from his own party.

CNN's Clare Sebastian following the very latest from Downing Street with more. Hey, Clare, so what's the latest?

CLARE SEBASTIAN, CNN CORRESPONDENT: Oh, yes. Good morning, Polo, apologies for the delay there. We are here in Downing Street, as you say, and this is always a day of political theater. The King set to head down to Parliament to deliver in, you know, all of the pomp and circumstance the government's legislative priorities for its sort of program going forward. But I think the political theater is now compounded by the turmoil within the prime minister's Labour Party that we've seen playing out over the last few days.

And there was another arrival this morning that perhaps is getting even more attention than the King. And that was the health secretary, Wes Streeting, who is seen as a key potential challenger to the prime minister. He arrived here in Downing Street, walked in through the front door pretty confidently, and then walked out less than 20 minutes later.

So read into that. We don't know exactly what to read into that at this point. It isn't clear what he said to the prime minister. It isn't clear at this point if he has enough backing from his fellow members of Parliament to launch a credible leadership challenge. He needs 81 MPs to back him. That's 20 percent of Labour MPs. We don't know if he has that. We don't know if he's even decided to make a bid at this point, but owed to be a fly on the wall in what was very likely a pretty awkward meeting.

[04:25:06]

And the backdrop to this is pretty clear. We have now more than 80 MPs who've come out and said to Keir Starmer after catastrophic local election results last week that the Labour Party that they want him to go. On the other side, we now have more than 100 MPs who've signed onto a letter saying, please, no, not now. Now is not the time for a leadership race.

And all of this, as I said, as we see the King set to deliver these legislative priorities. More than 35 bills and draft bills, what the government is calling an ambitious program to break with the status quo. At this point, it's not clear if the prime minister will be the one to deliver all of that.

SANDOVAL: Yes, so many questions there. Clare Sebastian following the latest from Downing Street. Thank you for that live report.

Still on the way, a car bomb killed an accused drug cartel member in Mexico earlier this year. Just ahead, a CNN exclusive report, new details about the CIA's alleged involvement in that operation.

Plus, more CNN exclusive reporting and an investigation into this Russian ship, which may have been carrying nuclear reactors to North Korea. And that's before it sank to the bottom of the sea.

(COMMERCIAL BREAK)

SANDOVAL: For the war with Iran, it is looming large over President Trump's much anticipated summit with Chinese leader Xi Jinping, ending the conflicts and opening the Strait of Hormuz. They are likely to dominate talks between the two leaders. And ahead of that summit, we are closely watching this live feed of some of the marine traffic in the Strait of Hormuz. And earlier there was a Chinese flagged oil supertanker that appeared to be at least trying to cross that Strait.

[04:30:00]

China is a longtime ally of Iran and the main importer of Iranian oil.