Delicate trip to China Now Trump is talking about war, power and billions

Donald Trump and Xi Jinping have a lot to talk about when they meet this week: Iran, Taiwan and the economy are big issues that need to be tackled. The summit could have consequences for the whole of Asia, as these 3 points show.

Donald Trump is visiting the People's Republic of China from May 13 to 15. On May 13, Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent will also meet in South Korea's capital Seoul. The American is then due to join his President on May 14.

The summit between Donald Trump and Xi Jinping is raising all kinds of expectations - and fears: On the agenda are the Iran war, the Taiwan issue, AI and the economy. What is decided in Beijing could have consequences for Europe, Japan, South Korea and Southeast Asia.

"Virtually everyone has an interest in the outcome of this meeting," Chad Bown from the Washington-based think tank Peterson Institute for International Economics told CNBC. Economist Eswar Prasad from Cornell University, who is concerned about the "bare survival of the value-based order", echoes this sentiment.

"The whole world is hoping that the two leaders can agree on at least a number of issues and find ways to prevent a further escalation of tensions on the other issues," summarizes Prasad. You can find out what the most pressing issues are here.

The "Jerusalem Post" writes, citing high-ranking US sources, that the Iran issue will be the focus of the state visit, but cooperation between Beijing and Moscow will also be addressed.

"The president has spoken with Xi Jinping several times about Iran and Russia," said one of the US sources, "including about the economic support China provides to these regimes, as well as goods, components and parts supplied to them, not to mention the possibility of arms exports."

Trump had actually wanted to travel to China in March, but the state visit was postponed due to the Iran war. "Why shouldn't he travel?" says another US source, countering criticism of the postponed visit. "The President of the United States can't just focus on one topic for weeks on end."

The 79-year-old consulted with Israel's prime minister before his departure, according to the Jerusalem Post: Benjamin Netanyahu spoke to the US president on the phone on May 10. The 76-year-old himself has stated that he only wants to end the Iran war once Tehran's nuclear material has been secured.

"You go in and take it out," Netanyahu said on the subject. The prime minister does not want to answer the question of whether American or Israeli special forces could carry out such a mission. However, he also says: Trump has announced that he wants to enter Iran.

Taiwan will also play a major role in the talks: Should Trump verbally row back on the issue of support for the island, it would be "the most destabilizing outcome" of the summit, Bonnie Glaser from the Washington-based think tank German Marshall Fund of the United States tells CNBC.

"A tacit or explicit agreement in which Washington appears to grant Beijing a sphere of influence over Taiwan" could encourage Xi Jinping to take further steps against the island, Glaser warns. Taiwan itself fears that Washington will change its tone on the island issue or stop supplying arms.

"That would be the biggest nightmare," an official on the island, who wishes to remain anonymous, told the New York Times (NYT). Although the source believes this is unlikely, he warns that any concession to China would also raise fears among other states in Asia.

"Trump may not care about Taiwan's freedom - or about the example Taiwan provides that a prosperous Chinese democracy is possible," analyzes the Wall Street Journal."But the president doesn't want a crisis under his aegis. [...] Xi will be watching closely to see if Trump signals that he would not defend Taiwan at a crucial moment."

"Trump's diplomacy is above all personal, and no one can predict how he will ultimately behave at the meeting. Japan and other countries in the region are watching with concern," says the Wall Street Journal. If Trump abandons Taiwan, this is likely to set alarm bells ringing among the allies in Tokyo and Seoul.

Japan and South Korea are also likely to have taken note of Trump's treatment of Friedrich Merz: Due to the German chancellor's criticism of US actions in Iran, the White House has announced its intention to withdraw at least 5,000 US soldiers from Germany.

Most of the world's GIs are stationed in Japan: 53,000 US military personnel are stationed there. There are 24,000 in South Korea, according to the NYT. Now fear is spreading in Tokyo and Seoul, writes the US newspaper: could Xi Jinping persuade Donald Trump to reduce the military presence in Asia with economic concessions?

Behind closed doors, Japan and South Korea are talking about diversifying their international contacts in order to be less dependent on the US, the NYT continues: "But in public, they are more cautious. [...] No one wants to be seen stepping out of line."

On May 2, Japan's prime minister refrained from criticizing China during a visit to Vietnam - at the request of the host, according to the NYT. At the same time, Sanae Takaichi bagged six cooperation agreements: These included the sharing of satellite data.

"The US has become less reliable, so it makes sense to develop alternatives," says Robert O. Keohane from Princeton University on the subject. "Having a weak alternative is better than having no alternative at all."