Trump, Xi Set to Meet in China Within Hours | Balance of Power 05/13/2026

Summary

The episode covers President Trump's summit in Beijing with Xi Jinping amid the Iran conflict and Strait of Hormuz blockade. Senators Blumenthal and McCormick discuss gas prices, Fed Chair Warsh's confirmation, and the China trade relationship. Former Ambassador Gary Locke analyzes the transactional nature of the summit. Markets react to hot inflation data and hopes for chip export relaxation.

• President Trump and Xi Jinping meet in Beijing for a summit focused on trade, Iran, and AI chip restrictions.
• Senator Blumenthal warns that gasoline prices could break $5 per gallon due to the Strait of Hormuz closure.
• Kevin Warsh is confirmed as Fed Chair with a thin margin, inheriting hot inflation and an ongoing war.
• Senator McCormick supports Warsh and expects AI to be deflationary, while noting the near-term inflation shock from Iran.
• Jensen Huang's last-minute trip to Beijing boosts AI and tech stocks on hopes of relaxed chip export controls.
• Former Ambassador Gary Locke describes the summit as a 'trip of transactions' with limited fundamental progress.
• The U.S. remains heavily dependent on China for rare earth minerals, giving China leverage in trade negotiations.
• Political panel discusses redistricting battles and the impact of inflation on midterm elections.