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Inside Politics

Xi Praises U.S.-China Relations But Warns Trump On Taiwan; Trump: Xi Offered To "Help" Resolve War In Iran; Musk Back At Trump's Side In China, One Year After Public Rift; Vance Touts Anti-Fraud Mission Ahead Of Contentious Maine Elections. Aired 12-12:30p ET

Aired May 14, 2026 - 12:00   ET

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

[12:00:00]

DANA BASH, CNN HOST: China delivers a chilling warning to the U.S. over Taiwan.

I'm Dana Bash. Let's go behind the headlines at Inside Politics.

Two crucial issues are weighing heavily over President Trump's talks with Chinese leader Xi Jinping, Taiwan and Iran, and it's setting up a question with enormous geopolitical stakes. Will President Trump bend U.S. policy on Taiwan for Beijing's help with Iran or earlier at a lavish state banquet, both leaders focused their remarks on unity?

(BEGIN VIDEO CLIP)

PRES. XI JINPING, CHINA [interpreted]: Achieving the great rejuvenation of the Chinese nation and making America great again can go hand in hand. Both China and the United States stand to gain from cooperation and lose from confrontation. Our two countries should be partners rather than rivals.

DONALD TRUMP, PRESIDENT OF UNITED STATES OF AMERICA: Just as many Chinese now love basketball and blue jeans, Chinese restaurants in America today outnumber the five largest fast-food chains in the United States all combined. It's a special world with the two of us united and together.

(END VIDEO CLIP)

BASH: But the smiles, the pleasantries, that's one layer of a far more complicated visit. CNN's Betsy Klein is in Beijing. So, Betsy, what are you learning about the conversations between these two leaders behind the scenes today and the expectations for tomorrow?

BETSY KLEIN, CNN SENIOR WHITE HOUSE REPORTER: Well, Dana, that's exactly right. I think it is important to keep in mind that this is just the first of two days of talks on a number of thorny issues, and they are going to talk with a smaller group tomorrow. Now, China has managed the stage craft here meticulously, leaving nothing to chance in front of the cameras. Behind closed doors, however, that is a different story, and we saw that in this first meeting that lasted about two hours. Now, analysts and experts heading into this meeting had expressed some concern that China held more of the cards going into this meeting because of the war with Iran, and there were concerns that President Xi could use some of that leverage to push for more control over Taiwan and making that very clear.

As this meeting was ongoing, according to Chinese state media, Xi offering a very forceful statement. He said, according to Chinese state media quote, if it is handled properly, relations between the two countries can maintain overall stability. If it is not handled properly, the two countries may clash or even come into conflict, pushing the entire U.S.-China relationship into a very dangerous situation.

Now, should note that President Trump ignored a shouted question on the issue of Taiwan. Secretary Rubio also downplayed this. He said that he expected this to come up with President Xi, and that there has been no change to U.S. policy on this. Now, separately, Iran also looming over this two-day summit. China is a major consumer of Iranian oil has close ties to Iran, and President Trump had been widely expected to push President Xi to reopen the Strait to push Iran to reopen the Strait of Hormuz and also pressure Iran to accept a peace deal.

Now in the U.S. readout of this meeting, China agreed that the Strait of Hormuz quote, must remain open and that China opposes militarization and any tolls in the Strait. Of course, these comments largely align with prior statements from China on this issue. So, the big question right now is, did Xi agree to provide any additional support behind the scenes? President Trump says that he offered to help. Secretary Rubio says in an interview that he didn't ask for help. So, we'll be watching how that plays out going forward.

BASH: All right. Betsy, thank you so much for that reporting. I appreciate it. I want to bring in CNN's chief national security analyst, Jim Sciutto. Jim, with any diplomatic event or summit, there are tea leaves to read, and they're important translations to be made, but nothing compares to what you have to do in China. So, we're very lucky to have you because you are a good translator of these things.

And I just want to read once again what Betsy put up there, because I want our viewers to see it again and get your reaction. This is what China read out about the Chinese president's meeting and what he told President Trump about Taiwan. If it is not handled properly, the two countries may clash or even come into conflict, pushing the entire China-U.S. relationship into a very dangerous situation. Taiwan independence is fundamentally incompatible with peace across the Taiwan Strait. That sounds like Chinese saber-rattling.

[12:05:00]

JIM SCIUTTO, CNN ANCHOR AND CHIEF NATIONAL SECURITY ANALYST: Yeah, it is. And of the tea leaves to read, these are the ones that were pretty darn clear, right, blaring red. This is China saying the U.S. risks war. The U.S. and China risk war over Taiwan, if not handled properly, handled properly from China's perspective, is don't get in our way, right, and don't push or encourage Taiwan to declare independence. That's a clear message. And conflict is --

BASH: Which is how Taiwan sees itself.

SCIUTTO: Well, there you go. It does, 100 percent, and the U.S. position, as you know, has been to not support or push for Chinese -- Taiwanese independence, but also not stand in the way, right? The crucial words from Rubio were quite notable here, because Rubio then says, no force change to the status quo.

BASH: Yeah. He specifically said -- forgive me, U.S. policy hasn't changed. That's -- I mean, that's sort of the key --

SCIUTTO: Yes. That's key. And to reiterate that language, no force change to the status quo in Taiwan, because going into this summit, there was genuine concern among Asian allies. I've been speaking to a number of Asian diplomats, but also Republicans and Democrats on Capitol Hill who were very much in support of Taiwan, that President Trump would give ground on Taiwan.

Now those are Rubio's words. Those aren't the president's words. And as you and I well know, it's the president's words that matter. We don't know what President Trump said behind closed doors. Was Xi or might say before he goes, might he give a little bit of ground there, right up to it, language matters. The concern going in was that Trump would change the U.S. position from the U.S. does not support Taiwanese independence to the U.S. opposes Taiwanese independence.

BASH: Big change.

SCIUTTO: Small, you know, sounds small, but it is a big -- it's a major change. Now, Rubio is certainly not saying that. He's saying status quo, we don't know what the president says.

BASH: And kind of unspoken here is the quid pro quo.

SCIUTTO: Yes.

BASH: And the pro quo of this is Iran, and how much the president really wants China's help with Iran on multiple fronts, but in the short-term, opening the Strait of Hormuz. The president --

SCIUTTO: Wants and needs.

BASH: And needs, exactly. Let's listen to what the president said in that Fox News interview this morning.

(BEGIN VIDEO CLIP)

TRUMP: President Xi would like to see a deal made. He would -- he would like to see a deal made. And, oh, he did offer. He said, if I can be of any help at all, I would like to be of help, because --

SEAN HANNITY, FOX NEWS, HOST: He didn't say that.

TRUMP: Yeah, he didn't say that. And look, anybody that buys that much oil has obviously got some kind of a relationship with him. But he said, I would love to be a help. If I can be of any help whatsoever, he would like to see the Hormuz Strait open.

(END VIDEO CLIP)

BASH: In exchange for what?

SCIUTTO: Right, and that's the open question, of course. Listen, China has its needs and interests as well. They're not going to do it out of the kindness of their heart. Now, China has its own interest to open that Strait, right, because --

BASH: Like, they get 80 percent of their oil.

SCIUTTO: To the president's absolutely right there. They depend on it far more than, than we do, and are paying an economic price for those costs. But also, China sees the U.S. as bogged down in the Mid East yet again, right? Here is a America bog down in the Middle East, yet again, having depleted an enormous amount of his military resources, missiles, et cetera, that the U.S. might have used or relied on to defend Taiwan or to project power in Asia.

Now, they see their superpower rival as at least distracted and possibly weakened by that war. So of course, it's in China's understandable nature to say, OK, how can we take advantage of that so that we come out ahead in this? Now I will say to the president's words. I've spoken to a lot of folks who have been watching this meeting, both prior to the summit and since it's been under way that both sides do want and have an interest in stability.

They don't want to be throwing punches every day in the trade, certainly in the national security space or the trade space. They both want that. The language and the statements so far have fed that impression. So, you might come away from this with both sides saying, OK, we, you know, everything is copacetic, right, and that's not a bad thing for the world. But on those issues, opening the Strait, Taiwan status still open questions.

BASH: Thank you so much for being here.

SCIUTTO: Thank you.

BASH: Appreciate it. Guess who's back? Elon Musk and President Trump, they seem to have patched up their relationship. We'll discuss how and why Musk joined the president on this trip to China. And later, one of the most competitive Democratic primaries is smack in the heart of New York City. Jack Schlossberg, rather, is in that crowded field, and he will be here in the studio to talk about his campaign.

(COMMERCIAL BREAK)

[12:10:00]

(COMMERCIAL BREAK)

BASH: President Trump is bending over backwards to sound very friendly with the Chinese leader and even towards China itself. Here are a few comments the president made today during his trip to Beijing. (BEGIN VIDEO CLIP)

TRUMP: Such respect for China, the job you've done. You're a great leader. I say it to everybody, you're a great leader. I wanted only the top, and they're here today to pay respects to you and to China. It's an honor to be with you. It's an honor to be your friend.

(END VIDEO CLIP)

BASH: Now, the tone, generally speaking is maybe not what Americans are used to, at least if you take the Inside Politics way back machine to 2016 when then candidate Trump had these things to say about China.

[12:15:00]

(BEGIN VIDEO CLIP)

TRUMP: We can't continue to allow China to rape our country, and that's what they're doing. China, which has been ripping us off the greatest abuser in the history of this country. China engages in illegal export, subsidies, prohibited currency manipulation and rampant theft of intellectual property.

(END VIDEO CLIP)

BASH: Our panel is here. Jeff Zeleny, I'm guessing some of those things are not going to come up in the meetings that the president is going to have with Xi Jinping.

JEFF ZELENY, CNN CHIEF NATIONAL AFFAIRS CORRESPONDENT: Not at all. I mean, President Trump, obviously is not the only American president who talks tougher on China here in the U.S. than when they're actually visiting China. I was thinking back to a President Trump's first trip to Beijing, which I was with him on, and he talked very softer than to Beijing as well, even though it was months after this very tough rhetoric of the campaign. But this year is such a different moment, because China was intended to be front and center in the Trump administration's foreign policy and look where we are today in May --

BASH: Not to mention, economic policy.

ZELENY: -- economic policy as well, rolled back on the tariffs. And the president arrives in China at these meetings in a far weaker position. I mean, it's just hard to understate that. I mean the Iran war, yes, but so many other things. So, I think that the leverage here is hardly on President Trump's side. So yes, he's going to be a little friendlier and kinder, but that's not all that unusual again. I mean --

BASH: No, that's true.

ZELENY: He may be calling out China once he comes home, but I think beyond that, it's just a different moment for President Trump for his long wishes on China.

BASH: Yeah. And the leverage part of what Jeff just said, I think, is really key.

ASMA KHALID, CO-HOST, THE GLOBAL STORY PODCAST, BBC: It is. I mean, it's maybe hard to remember right now, but when Trump came into office last year, well, actually, shortly after he came into office, he issued the sweeping tariffs on China. You knew that there was this trade war where you had tariff rates of over 100 percent between China and the U.S., and essentially all trade was frozen. Then there's a rollback, and there's been a de-top, you could say, between these two countries.

And I think, to me, what has been amazing to see in this moment, and I think really, really striking is that this is about a decade after Trump last went to China. And over that decade, you've seen China rather systematically diversify their trade and realize that, hey, we might have an unstable partner in the U.S. And so, what do we do? Well, they've diversified how they trade so much. So that if you look at how their trade went last year, that is a record $1.2 trillion trade surplus. That, to me, is shocking given those like monumental tariffs.

BASH: That is shocking, wow. Can we talk about Elon Musk?

ALAYNA TREENE, CNN WHITE HOUSE CORRESPONDENT: Yeah, let's do it.

BASH: OK. Again, we're going to go back, not as far back in the way back machine, but just go back to 2024, when the president tasked Elon Musk, who can forget this to lead DOGE with Vivek Ramaswamy. And then you remember that chain saw that he had, and he was, you know, Elon Musk was extremely popular among conservatives for cost cutting.

Then Elon Musk's time in the administration came to an end at the end of May 2025. And there was a huge falling out Musk put on social media that Trump is in the Epstein files. And now you have this year the president and Elon Musk rekindling their relationship, and it's certainly being rekindled in a different way with this trip to China.

TREENE: Absolutely. What was really striking to me, and you referenced the, you know, the very public breakup that these two men, you know, having that very famous bromance of sorts throughout most of his first year in office, now coming back together as there were only two kind of the tech Titans that the U.S. had invited to attend the summit in China who actually traveled with the president on Air Force One. One of them was Elon Musk. The other was Jensen Huang, who from NVIDIA, who also traveled with the president, but --

BASH: That was a late ad, he got on it in Alaska.

TREENE: He did. Yes, they joined later, so did Elon. And what I think is interesting is I know that the two of them have really been kind of rekindling and working on their relationship in recent months. This is something that isn't, you know, out of the blue, all of a sudden, the rift is over. This has been kind of behind the scenes. A lot of people in Trump's orbit working on them coming together again. I do not think this is -- I've seen a lot of the speculation online like, oh, we're ready for DOGE 2.0. Senator Mike Lee was posting stuff like that yesterday about this. That's not what this is. He's not coming back to, you know, do more with the government. But the president obviously sees the value in having Elon onside. He's there in the capacity as being the CEO of, you know, running Tesla of SpaceX and all of that. You heard the president in his comments while he was meeting with Xi that he wanted to bring only the best leaders, the number one, the CEOs of all the best companies.

[12:20:00]

BASH: And he did. You know, we talked about Elon Musk, Tim Cook, the outgoing now, head of Apple. You mentioned Jensen Huang of NVIDIA, Kelly Ortberg of Boeing, Larry Fink of BlackRock, David Solomon of Goldman Sachs. Jeff?

ZELENY: Look, I mean, it's the -- this is what the president wants to be. The centerpiece of this trip, all about deals. So that's the headlines the White House hopes to a right is all about these deals. But the reality is, that's a very short-term thing. I mean, the short- term versus long-term perspective of the U.S. and China relationship, I think, is so fascinating. And I was struck last night watching the president being a welcome there in front of the Great Hall of the People, and the young children that were very intentionally whether to welcome the U.S. president. That's the future.

And the point is, China has been doing so much more around the world. So, when you look at the 10-year period that you were talking about from 2017 to now, it is extraordinary, the differences in the dynamic and the imbalance between the U.S. and China.

BASH: Yeah, that's a very good point.

KHALID: Yeah, no. I mean, the last thing I was just going to say is, I think there's a lot that has been on the agenda. I'm really curious what actually materializes because it doesn't feel like China and the U.S. are necessarily there to talk about the same things, right? I mean, it's trade, it's tariffs, it's Taiwan, it's also Strait of Hormuz --

BASH: Iran.

KHALID: -- Iran. And it'll be very interesting to see what materializes and the readouts sound like they were slightly at different meetings.

BASH: Yeah. That's -- that is a very diplomatic way to say it. Up next. Vice President J.D. Vance says that with the president and other top aides in China. He feels a little bit like Kevin McCallister in Home Alone. So, he's getting out of town too.

(COMMERCIAL BREAK)

[12:25:00]

(COMMERCIAL BREAK) BASH: Any moment, Vice President J.D. Vance will take the stage in Maine. His first official road show event since President Trump dubbed Vance quote, fraud czar. That happened last month. He emphasized focusing on blue states with, quote, crooked Democrat politicians, name dropping the one where Vance is right now, again in Maine, but Vance's spin on the mission sounds a little different.

(BEGIN VIDEO CLIP)

J.D. VANCE, VICE PRESIDENT: We have red states and blue states that go after fraud aggressively, but we also, unfortunately have some states, mostly blue states, unfortunately, that do not take Medicaid fraud very seriously. You may think that this is purely a red state or blue state issue. That's actually not true. Again, this does not have to be a red state or a blue state issue. Red State or blue state, we're going to go after it, we have to.

(END VIDEO CLIP)

BASH: My panel is back now. Talk about what went on behind the scenes, Alayna, that led to not only Vance getting this portfolio, but making the trip now, while the president and Rubio are overseas.

TREENE: Yeah. The timing of it is very bizarre to me, to be honest.

BASH: Or not or intended.

TREENE: Or not. Yeah. I mean, look, I think with the fraud portfolio, this is something that, the way that it was described to me from my conversations with fans as aides, was that, this is in the president actually cares a lot about and he often does -- what he often does is he'll say he wants something done, and he'll say, J.D. will put you on it. And that's kind of how it was.

I do think that the fraud portfolio, one thing that struck me is, I think a lot of times presidents give their vice presidents portfolios that, you know, are not as savory, that they don't want to handle because of the politics of it. I actually don't think that's what this is. I think this --

BASH: No, just the opposite.

TREENE: -- this is the opposite. This is actually a chance for him to really make gains on an issue that the president and a lot of Republicans care a lot about. I do find, as you mentioned, the timing of this trip interesting and why he would go today, when so much attention is going to be on China. Maybe I'm being naive and not reading as much into it as maybe others are. I know he has a lot of these planned, and this is going to be a big push that they work on ahead of the midterms, but of course, it's strange.

ZELENY: It's overnight in China right now, so it's like his one window to, kind of like, get into the news cycle.

BASH: And Maine is one of the key battlegrounds for Republicans and Democrats in the United States Senate. Susan Collins is the incumbent Republican. Democrats are hoping this is the time they can finally unseat her after being unsuccessful for decades in doing that. She's not there. Here's what she said. She said, he will have come and gone by the time I can get home, since I don't miss votes. She added that, since she isn't sure if Vance will return to Maine in the fall, saying she's always run her own campaign.

KHALID: Well, Susan Collins has always been an independent woman. I will say, anybody who's known or talked to her, I mean, her voting record has shown that right, even just things and policies she supports over time. I mean, look, I find the trip really interesting, because I find it striking that he is doing this while the president is in China. I actually think that is somewhat to his advantage, because foreign policy has been a thornier issue for J.D. Vance.

We saw him go to Pakistan to try to help negotiate the ceasefire in Iran, but he has made it clear he doesn't want the U.S. involved in as much adventurism abroad. So, I think, you know, as we look at what his ambitions might be for the future, I think him focusing on a domestic agenda is very much to J.D.s' advantage -- J.D. Vance's advantage and what he would prefer to do.

BASH: And can we just take a step back, Jeff, and look at just the subject? So, he's talking about fraud, and you know, there are a lot of Democrats who hear that and say, OK, that's rich, because they look at some of the things that the president and people around him have done.

[12:30:00]