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The Story Is with Elex Michaelson

Trump, Xi Jinping Kick Off Meeting at China's Great Hall of the People; Inside Wartime Iran as Talks with U.S. Stall; Upheaval Casts Shadow Over King Charles' Speech to Parliament; Trump in Beijing for Talks with Chinese Leader Xi Jinping; Top Business Leaders Accompany Trump to Beijing; Court Void Alex Murdaugh's Convictions, Orders New Trial; Princess of Wales on Two-Day Visit to Italy. Aired 12-1a ET

Aired May 14, 2026 - 00:00   ET

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

[23:59:53]

ANNOUNCER: This is CNN Breaking News.

ELEX MICHAELSON, CNN ANCHOR: And welcome to THE STORY IS. I'm Elex Michaelson live in Los Angeles with breaking news.

Our top story, the highly anticipated summit between U.S. President Donald Trump and Chinese President Xi Jinping, underway at this hour in Beijing. The war with Iran, trade, technology Taiwan expected to be the top issues on the agenda.

This happened a little earlier tonight. President Xi welcoming Mr. Trump just a short time ago at the Great Hall of the People. Both leaders exchanging pleasantries, hoping for a fantastic future, expecting their relationship to be better than ever, with common interests outweighing their differences. President Trump will be the guest of honor at a state dinner Thursday night, local time.

Quite an elaborate welcoming ceremony. As President Trump arrived at the airport in Beijing, children chanting welcome as Trump walked off the plane, along with several members of his family, top Cabinet officials and more than a dozen U.S. business executives.

CNN's senior White House reporter Betsy Klein live for us this hour in Beijing.

Betsy, what's happening right now?

BETSY KLEIN, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, Elex, I actually just got back from that arrival ceremony at the Great Hall of the People. And China has rolled out the literal and figurative red carpet for President Trump, welcoming him with this official ceremony. So much pomp and circumstance. There were these children holding flags and flowers. There was a military band playing both countries national anthems, cannon salutes as well as a troop inspection.

President Trump and China's leader Xi Jinping walking a red carpet together. The president appeared visibly delighted. And this is a level of meticulousness that the world has come to expect from China for this type of pageantry. This moment marks the official greeting, kicking off these two days of very consequential talks between President Trump and his Chinese counterpart.

Now, President Trump is a former reality television star. He is deeply attuned to presidential stagecraft, both when he is a host back in Washington and when he is a guest abroad. So any world leader who is looking to cultivate close ties with President Trump looks to flatter and delight him. President Xi, clearly very keenly aware of President Trump's tastes here. And the president did appear to have a warm rapport with President Xi, with whom we know he has some level of admiration and a good relationship.

We could see the two men touching each other's arms as they walked across that red carpet together, really a warm relationship on display there. Then after all that pomp, the two leaders sitting down with their top aides and officials for those very intensive discussions. The first set of those. And that is where President Trump can be a little bit more unpredictable. But on the Chinese side, these very highly choreographed events on camera are an opportunity to project and attempt to achieve the type of stability that they are looking for in this relationship with the U.S..

Now, of course, this is not the China trip that President Trump envisioned. The war with Iran complicating and overshadowing his initial goals here. China has very close ties to Iran. It is the largest consumer of Iranian oil. So they have so much to discuss. And we do expect Iran to dominate this conversation. President Trump has suggested that he will push China to pressure Iran to accept a peace deal and also to reopen the Strait of Hormuz.

Now, of course, this comes days after Xi met with Iran's foreign minister, so he should have a pretty good idea of what Iran is willing to accept there. Now, they're also expected to unveil some new trade deals in the aerospace, agriculture and energy spaces. All wins for President Trump to tout when he returns back home. President Trump is also expected to raise the case of Hong Kong media mogul Jimmy Lai. He was charged with sedition and is serving 20 years in prison.

Now, analysts have warned that President Trump could be walking into a meeting where Xi holds all the cards, and they are concerned that in part, the Chinese leader might use that leverage to push for more control over Taiwan. So that is going to be a space to watch. But for now, the two leaders exchanging pleasantries. They are expected to do some cultural exchange in a short while at the Temple of Heaven. We'll be watching that -- Elex.

MICHAELSON: Yes. And we'll be seeing that likely within this hour. What else is on tap for today and tomorrow, Betsy?

KLEIN: There is a state banquet later this evening. So another opportunity for everyone to dress up and for China to try to impress President Trump. Then tomorrow, the leaders will have a tea before President Trump returns to Washington.

[00:05:04] So President Trump has brought this large cadre of aides and associates, including Treasury Secretary Scott Bessent, U.S. Trade Rep Jamieson Greer, along with National Security officials, really underscoring how this trip has shifted. That includes Secretary Hegseth, the Defense secretary, Secretary of State Marco Rubio. There are also about a dozen CEOs, and we saw them during that welcome ceremony, including Apple's Tim Cook, Elon Musk and many others.

So we do expect some of those themes of artificial intelligence trade to keep coming up. And we'll see what both sides are able to read out at the end of this.

MICHAELSON: It was remarkable to see that first row of a lot of the Cabinet members and the second row some of the biggest names in business from the United States represented in Beijing.

Betsy Klein, starting us off live from Beijing. Betsy, thank you.

Let's go now to Seattle, Washington. Gary Locke, he's the former U.S. ambassador to China, former U.S. Commerce secretary, and former governor of Washington state. What a resume.

Governor, Mr. Ambassador, Mr. Secretary, welcome to THE STORY IS. And you are one of the few people that knows what it is like to sit in the room for one of these meetings, which is happening right now. Take us inside the room. What's it like?

GARY LOCKE, FORMER U.S. AMBASSADOR TO CHINA: Well, first of all, it's a pleasure to be with you.

President Xi is very confident. He's very relaxed. He does not read from a script like some of his predecessors. So he has a great confidence and he's willing to engage in all types of topics. So, it's going to be a very interesting meeting. And I think it matches the personality of President Trump as well, who can be sometimes unpredictable. But President Xi is very nimble and will be able to press his points even in a more free flowing fashion.

MICHAELSON: What's the U.S. hoping to get out of this? What would be, you know, the best case scenario for the U.S.?

LOCKE: Well, first of all, President Trump very much wants to go back to the United States with headlines touting sales of soybeans, beef, and Boeing airplanes. But China also wants to be able to have something in return. They want more access to advanced chips as they move forward on artificial intelligence. They won't need American chips much longer because their tech industry is really beginning to almost rival American advanced chips and high technology.

But in the meantime, they would like some of these advanced chips. President Trump also very much, as your correspondent indicated, would very much like China to press Iran to enter into a peace deal with the United States. I think that's going to be very, very difficult because Iran is actually a very close ally with China.

MICHAELSON: And in terms of those chips, Jensen Huang, who is the leader of Nvidia, sort of a last-minute addition to the trip, joined in Alaska, jumped on Air Force One and is there for this meeting as well. So what is China trying to get out of this, best case scenario for them?

LOCKE: Well, China very much wants a more stable relationship. They want no more tariffs imposed by the United States on Chinese goods going into the United States. Of course, the courts have already basically eliminated most of those tariffs. But what was interesting in the truce -- the trade truce last year was that China decided or agreed to relax and hold off for a year tighter restrictions on the sale of rare earths and critical minerals coming to the United States.

The United States very much needs those rare earths and critical minerals, almost all of it coming from China, which America needs for its jet fighters, its cruise missiles, its Patriot missiles and satellites. And given the depletion of American arms during the war with Iran, America, military establishment very much needs those rare earths and minerals.

MICHAELSON: And speaking of the war with Iran, sort of how does that impact all of this? You've suggested that China may kind of like to see the U.S. struggling a bit.

LOCKE: Well, obviously, the United States is somewhat alone. Even its European allies have not supported the war with Iran, the unilateral action by Israel and the United States without consultation with the European allies. They're certainly not jumping on board in terms of trying to open up the straits. So China, in fact, is supplying military equipment to Iran and is a close ally with Iran. So in some ways, China relishes seeing the United States twisting in the wind.

MICHAELSON: But what's the ask for President Trump in terms of China? And why would China potentially agree to help when it comes to Iran?

[00:10:04]

LOCKE: Well, first of all, while China gets one -- well, while China is the largest buyer of Iranian oil, China actually receives very little oil or, excuse me, very little of China's energy supply comes from either Iran or the Gulf States. Less than one-third, less than 20 percent of its energy supply comes from oil and a small fraction of that comes from Iran. So China is actually fairly energy independent, but the many other countries in the Pacific region and around the world depend on that oil from the Gulf States and from Iran.

And if their economies tumble, that will affect the export capability of China because China's economy very much depends on selling to other countries. And if their economies are faltering, that means less purchase of Chinese made goods.

MICHAELSON: Gary Locke, former ambassador to China, former governor of Washington, thank you so much for being with us. Really appreciate your insights.

LOCKE: Thank you very much. MICHAELSON: Now, while President Trump is in China, he's expected to

encourage Xi Jinping to push Iran towards a peace deal with the U.S. and reopen the Strait of Hormuz, something we've been talking about. Vice President J.D. Vance says that negotiators are still making progress, even though the U.S. has been unhappy with Iranian proposals in recent weeks. Vance says the administration remains focused on ensuring Tehran can never obtain a nuclear weapon.

(BEGIN VIDEO CLIP)

J.D. VANCE, VICE PRESIDENT OF THE UNITED STATES: Look, I think that we are making progress. The fundamental question is, do we make enough progress that we satisfy the president's red line? And the red line is very simple. He needs to feel confident that we've put a number of protections in place such that Iran will never have a nuclear weapon. Right? That is the question. Do we meet that threshold or not?

(END VIDEO CLIP)

MICHAELSON: CNN's Matthew Chance is now in Iran with photojournalist Alex Platt, with an inside look at how the war is impacting Iranians. We'd like to note that CNN only operates there with the permission of the Iranian government as is required under local regulations, but maintains full editorial control over what it reports.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN CHIEF GLOBAL AFFAIRS CORRESPONDENT: Well, we're on a long drive towards the Iranian capital, but we've had to stop because we've come to a bridge that was struck by a U.S. or an Israeli airstrike during the recent bombing campaign. You can see a whole section of it has fallen into the river. And if you look around over here, all the cars and trucks have had to go around on this detour. When you consider all the other roads and bridges that have been hit, it's added hours to the journey time.

Well, before we arrived in Iran, some Iranians told us, don't go in. It's too dangerous. The war could resume at any time, especially amid growing tensions over the closure of the Strait of Hormuz and the failure of the U.S. and Iran to reach a compromise over nuclear activities. But with President Trump on that state visit to China, both the U.S. and Iran seem to be looking to Beijing as a possible way out of their deadlock.

Iran is China -- well, China is Iran's major trading partner. China buys most of Iranian oil, has a shared interest with Washington in getting the energy supplies unblocked. Meanwhile, here in Iran, we're glimpsing how the country is being shaped by the conflict and the pressure it's under. From crowds of Iranians at the border we've just been to, hauling cooking oil across from Turkey, where it's much cheaper.

An acute cost of living crisis, remember, sparked nationwide protests late last year that ended in horrific violence. To the words of one Iranian father who told me that what he called Trump's war had silenced people and made the Iranian government stronger, in his words, at least for now.

Matthew Chance, CNN, on the long road to Tehran.

(END VIDEOTAPE)

MICHAELSON: Our thanks to Matthew Chance.

As the British prime minister struggles to keep his job, a potential challenger has emerged. Details in the Labour Party's possible power struggle. And a military crew rushes to rescue nearly a dozen people after their small plane went down near Florida. We'll show you the dramatic operation led by the U.S. Air Force.

(COMMERCIAL BREAK)

[00:18:55]

MICHAELSON: New data shows the war with Iran is raising costs for U.S. businesses at a rate not seen in nearly four years. The Producer Price Index, a measure of wholesale inflation, surged to 6 percent in April on an annual basis. On a monthly basis, it was up more than expected to 1.4 percent. This marks the biggest increase since 2022.

Energy is a big driver of the jump, as Americans are already feeling the pain with high gas prices. All this coming just one day after President Trump dismissed concerns about the economy, saying this.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I don't think about Americans' financial situation. I don't think about anybody. I think about one thing. We cannot let Iran have a nuclear weapon.

(END VIDEO CLIP)

MICHAELSON: Vice President J.D. Vance was asked about that comment. Here's how he responded.

(BEGIN VIDEO CLIP)

VANCE: I don't think the president said that. I think that's a misrepresentation of what the president said. But, look, I agree with the president that Iran should not have a nuclear weapon. We're obviously engaged in a very aggressive and very engaged diplomatic process to try to ensure that that doesn't happen. And the president has a lot of options.

[00:20:01]

A nuclear proliferation is one of those challenges that people don't realize it's the biggest threat to America's national security and it's not obvious until it is.

(END VIDEO CLIP)

MICHAELSON: Inflation pressures from the Iran war will be one of the key issues facing the next chair of the Federal Reserve. His name is Kevin Warsh. He was confirmed by the Senate to succeed current Fed chair Jerome Powell. 54 to 45 vote, was mostly split along party lines and was the most partisan vote for a Fed chair nominee in history. Warsh is widely viewed as more aligned with President Trump, who has been pushing for rate cuts. But right now, investors expect the Fed to keep its benchmark lending rate unchanged for the rest of the year, or even raise rates if inflation worsens.

Georgia's Republican governor is calling for a special session of the state legislature to redraw House maps. Brian Kemp says changes will go into effect ahead of the 2028 elections, not this year's midterms. His proclamation cites the recent Supreme Court decision gutting a key provision of the Voting Rights Act. The days since that ruling, several Republican led southern states have made moves targeting or eliminating majority-minority House districts.

Traditionally, redistricting takes place once a decade as states incorporate updated census information. Meantime, House Minority Leader Hakeem Jeffries slammed Republican state legislatures in the south. He called their efforts to redraw maps, quote, "a return to Jim Crow-like segregation." He also said GOP lawmakers are redrawing districts because they fear electoral defeat.

(BEGIN VIDEO CLIP)

REP. HAKEEM JEFFRIES (D-NY): Have concluded that they need to cheat to win. That's what they're celebrating? Republicans can't defend their policies. They can't defend their failure on the economy. They can't defend this reckless and costly war of choice. They can't defend the fact that they've ripped health care away from millions of Americans. They can't defend the fact that they're stealing food from the mouths of hungry children, seniors and veterans.

And so we're not going to unilaterally disarm, not now, not ever. And this redistricting war is just getting started.

(END VIDEO CLIP)

MICHAELSON: Jeffries also argued that the midterm math remains in Democrats' favor when it comes to the regaining the House majority.

No contender has come forward yet to challenge Britain's beleaguered prime minister, but that could soon change. British media reports that Keir Starmer's health minister, Wes Streeting, is getting ready to resign possibly in the coming day. Streeting could then launch a former Labour Party leadership contest, but the prime minister under pressure to step aside.

Political upheaval stealing some of the spotlight from King Charles, who appeared in parliament to lay out the legislative agenda.

CNN's Clare Sebastian reports from Downing Street.

(BEGIN VIDEOTAPE)

CLARE SEBASTIAN, CNN CORRESPONDENT: There's a real feeling here that things could be coming to a head after what's been a week of turmoil for the British prime minister. Wes Streeting, a key potential challenger to the prime minister, we saw him arrive here in Downing Street this morning for what was a strikingly brief meeting. He was in and out of Downing Street in about 17 minutes.

And then, just before the King's Speech got underway later that morning, we had a report, as you say, from the British media, that Wes Streeting may be preparing to resign and then launch a leadership challenge. Now, that is not confirmed yet, but I think it's fair to say that this turmoil that we see in the Labour Party, in the prime minister's party, we've seen throughout the week, members of parliament have come forward and said that they want him to resign. Others have come out and said that they don't favor a leadership race right now.

This turmoil isn't going away despite a small reprieve today from the King's Speech. But this was obviously a day of political theater. It's a set piece event in the British calendar, but I think it was to an extent overshadowed by what's been going on behind the scenes. And there was a moment that I want to bring you in that speech where Black Rod, who is an official who is tasked with summoning the members of the House of Commons to the state opening, the official opening of parliament, banged on the door of the House of Commons.

Take a look at what happened.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Close the door.

UNIDENTIFIED MALE: Not now, Andy.

UNIDENTIFIED MALE: Black Rod, open the door.

UNIDENTIFIED MALE: Black Rod.

(END VIDEO CLIP)

SEBASTIAN: The "not now, Andy," the voice there, we believe, of a Labour member of parliament, a reference to Andy Burnham, who is currently the mayor of Manchester, but also seen as a potential challenger to Prime Minister Keir Starmer if he is able to find a way to get reelected back into parliament. So I think you can see really how much this is playing out behind the scenes.

And just to step back a minute, we're less than two years from this, the general election that brought Labour and Keir Starmer into power with a landslide. And now we're at a point where the chaos that they promised to stop, where we saw multiple prime ministers in quick succession under the previous conservative government, that same chaos seems to be coming back to the fore.

[00:25:10]

And the legislative priorities that the king set out in that government speech today, well, it's really not clear at this point who is going to be the leader, who is going to deliver them.

(END VIDEOTAPE)

MICHAELSON: Clare Sebastian in a rainy London. Clare, thank you.

President Trump and Chinese leader Xi Jinping have kicked off their summit in Beijing. It is happening right now. They are meeting as we speak. We take you live to Beijing. Live report next.

(COMMERCIAL BREAK)

[00:30:15]

MICHAELSON: We're following the historic summit underway right now in Beijing. U.S. President Donald Trump meeting with Chinese leader Xi Jinping. The day kicking off with an elaborate welcoming ceremony outside the Great Hall of the People. We saw crowds of children waving flags. This was entirely spontaneous at a military band playing the national anthems. Then the leaders and their delegations went inside for first round of talks.

President Xi saying that the U.S. and China should be partners rather than opponents, and forge a way for major countries to get along. Here's a bit of what President Trump had to say in response.

(BEGIN VIDEO CLIP)

TRUMP: 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. I 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.

(END VIDEO CLIP)

MICHAELSON: We know President Trump doesn't exactly do subtle.

Let's bring in CNN's Mike Valerio live for us in Beijing, where this is happening right now.

What do we know about what they're actually talking about, Mike?

MIKE VALERIO, CNN CORRESPONDENT: Taiwan is what they're actually talking about. So this is the first headline that's come from those closed door discussions. This is courtesy of Xinhua Newsflash, which is the state media that operates here in China. And essentially what it said through our translation from everybody working here in the Beijing bureau is that from the Chinese point of view, stability with the Taiwan question leads to stability in trade and everything else that the two sides are discussing -- we're discussing behind those closed doors in the Great Hall of the People, and will be discussing at the state banquet tonight and into the early morning hours tomorrow at Zhongnanhai, which is next to the Forbidden City. And it's the central headquarters of the Chinese Communist Party. So let's get to what was said exactly about Taiwan. This is coming

from Xi Jinping. Again, the readout from Xinhua Newsflash, emphasizing that, "The Taiwan question is the most important issue in China-U.S. relations. If it's 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 China-U.S. relationship into a very dangerous situation."

So I know you were saying at the top of the segment that Donald Trump really doesn't do subtle, but that's not exactly the Chinese side being subtle either. So what we're going to be watching to see on that front is whether or not there is any movement from the American position to change its stance on Taiwanese independence. Right now, there is the long standing recognition for more than two generations that the United States certainly recognizes that Taiwan is part of China, and it says it does not support Taiwanese independence.

But China, certainly Beijing, wants the United States to move from that it does not support independence to a slightly stronger version and say that it opposes Taiwanese independence. Marco Rubio, for what it's worth, the secretary of state, said before he reached China that there was going to be no real change in the American position. But of course, the United States needs help with reopening the Strait of Hormuz from China.

So we'll be waiting to see as more information comes out from these discussions, if possibly the Chinese say, OK, well, you want X, Y, and Z to help end this conflict, this chokehold, when it comes to the war in Iran, could perhaps Taiwan be one of the areas that China seeks for the United States to make concessions -- Elex.

MICHAELSON: So we know what China said about Taiwan. Do we have any sense yet what the United States said?

VALERIO: Not yet. So we're going to be watching for posts on Truth for the U.S. president to say what he thinks of the discussion. So right now, we're waiting for both the American and Chinese delegations to make their way towards the Temple of Heaven. And then there's going to be somewhat of an intermezzo between a visit to the Temple of Heaven, this landmark, indelible image of Beijing in the afternoon until later this evening, around 6:00 p.m., when they start getting ready for the state banquet.

So we're going to wait for that window in the late afternoon to see what, if anything, the president of the United States might say. But I'll tell you, when we're waiting to get the pictures from the Temple of Heaven, this is something that I'm sure if you're on your Instagram, social media feeds, if you've been to Beijing, it's a must see landmark. But why it's part of the cultural tableau here in this visit.

[00:35:04]

It was built during the Ming Dynasty, 1420, and this is where the emperors of China not only received the mandate of heaven to continue on and, I should say, begin their new dynasty of ruling China. But it's also where the emperors prayed for harmony between the earth and heaven. So harmony certainly is the theme that both sides are trying to project, as this is the first of four meetings that both Xi Jinping and Donald Trump will be seeing each other as they try to accomplish a major reset -- Elex.

MICHAELSON: Yes. Right now that meeting is going longer than we expected.

VALERIO: Yes.

MICHAELSON: So we don't know when they're going to make that visit. But when they do, we will bring it to you live right here on CNN.

Mike Valerio, with us all through the day and night for that. Mike, thank you.

VALERIO: Thanks, Elex.

MICHAELSON: I want to bring in now Katie Zachariah, former spokesperson for the U.S. Department of Homeland Security, who spent three years living in Beijing working as an attorney with big business, trying to coordinate all of that, has some interesting insights on all this as well.

Welcome back to THE STORY IS. It's great to see you.

KATIE ZACHARIA, FORMER U.S. DEPARTMENT OF HOMELAND SECURITY SPOKESPERSON: Thank you. Great to be here.

MICHAELSON: So we see the biggest names in American business are there from Tim Cook from Apple to Elon Musk from Tesla and X. And we see Jensen Huang is there as well from Nvidia. And they're right there in the second row. A part of all of this. What do they want out of this?

ZACHARIA: Well, I love that they're backing President Trump. That he was able to say to Xi Jinping in this meeting, I have brought not just the second tier, third tier marks of these companies. I have brought the heads of every single company to come meet with you. And for China, that is a distinction. That is a level of distinction. The president of the United States is not just bringing some low level people. They're bringing the top. And that matters in China. It matters for face. It matters for prestige. And --

MICHAELSON: And the president made a point to point that out in his remarks that we got the top people here.

ZACHARIA: Yes. Not just Elon Musk who wants to sell Tesla, not just Tim Cook, who's making Apple, but Jensen Huang, who is Nvidia. And this is a major component for Chinese business because they want these semiconductors. They need these semiconductors. And so as they discuss all of these business deals, this leverage that you can see the back and forth already happening.

But to have the CEOs of these companies be there to make decisive decisions behind President Trump is historic. And that welcoming ceremony was historic. I have never seen anything like that for a U.S. president to be welcomed like that by a Chinese -- by Xi Jinping or a Chinese leader, and the fog behind your correspondent, that smog that used to sit there, such a familiar feeling for me to look and see what he's looking at with the CCTV tower behind him.

MICHAELSON: Well, and there was some sort of joking that sometimes when they have the summit, they shut down some of the factories. So you often have really blue skies when big leaders come. That clearly did not happen for this, which is an interesting note as well.

So you've got the two most important leaders in the world. President Trump, President Xi, two men that are used to being the most powerful man in any room they walk into, now in a room together. How do you see that dynamic going for two guys that are used to driving the bus?

ZACHARIA: Well, first, the welcoming that Xi Jinping gave to President Trump laid the foundation that he wants a friendship. He wants a partnership. He's not -- he's doing all the pomp and circumstance, not just because they celebrate a foreign leader coming, but because he wants to show him, I want to offer you a hand of friendship, of partnership. And on the other hand, President Trump, he respects power, as does China.

And he knows and complimented Xi Jinping. And this is exactly what he should be doing as the leader and how you deal with China is to really compliment his leadership style, really compliment and affirm him in what he's doing, but also behind closed doors, as they do in China, the tough business happens behind closed doors to save face, as they say. But you know that the dealmaker-in-chief who wrote the "Art of the Deal," and Xi Jinping, who is known for being a hard liner in China, will end up coming to terms, but they are going to duke it out, maybe behind closed doors verbally.

MICHAELSON: Yes. And in terms of China, you live there. You say it's changed a lot. How do you see that and how has it changed?

ZACHARIA: So I was able to live there in 2011, visit there in 2010 under Hu Jintao. And I lived through the handover or change of power to Xi Jinping. And what I witnessed was from a real open standpoint towards Western business in the early -- in 2000, 2011, 2012, I was a corporate lawyer. The friendliness of, you know, a Westerner being in a -- it was a Chinese law firm. It was amazing.

And as 2012, 2013 started rolling around, there was a kind of more of unfriendliness and maybe not as welcoming to foreign investment and foreigners.

[00:40:09]

And then as I traveled through China over to Xinjiang and all through western China and southern China, I felt kind of this discord start to happen, even in the more remote places. And so what I'm looking forward to for this trip is President Trump really reinstituting business for China, with China, but with a leader that is not going to sell out American interests that's going to put America first, that's going to put American interests first. But that is also willing to engage with China again in a way that

works for both countries, not just this one way road that it's been for so long with China. And I think President Trump can deliver on that. And I'm looking forward to a little bit more expansion on this.

MICHAELSON: What do you think is the biggest deliverable that comes out of this whole thing?

ZACHARIA: Well, I think we're all hoping that the Strait of Hormuz, we have some leverage with the Strait of Hormuz. I think beef, soybeans and Boeings are the big points of discussion. And I'm hopeful for that. But overall, just a movement towards working together, as Xi said, and as also President Trump affirmed, rather than kind of a more hostile force in honoring these trade agreements.

MICHAELSON: Well, we wish we were inside the room right now because it would be fascinating to watch all of it. But it'll be interesting in the next hour or so to see them come out and see what has been -- being talked about right now.

Katie Zacharia, thank you for being with us. We appreciate it. Always great to see you. It's fun to talk about China with you.

Still ahead, a stunning twist in the Alex Murdaugh case. His murder convictions have been overturned, a new trial ordered. The question surrounding the original verdict, next.

(COMMERCIAL BREAK)

[00:46:23]

MICHAELSON: Welcome back to THE STORY IS. I'm Elex Michaelson. Let's take a look at today's top stories.

The highly anticipated summit between President Trump and Chinese leader Xi Jinping is happening right now. The two leaders met early Thursday local time at the Great Hall of the People in Beijing. The war with Iran, trade and Taiwan expected to be among the main topics of discussion over the two days of their meetings.

Cruise ship passengers are being confined on board after an outbreak of acute stomach bug sickness. The ship, named Ambition, is docked at Bordeaux Harbor in France. Health officials say up to 50 passengers have symptoms being treated and kept in isolation. The ship's operator, Ambassador Cruise Line, says one person has died. His cause of death has not yet been determined.

A licensed drug addiction counselor who delivered the ketamine that killed "Friends" star Matthew Perry has been sentenced to two years in prison. Erik Fleming is the fourth of five defendants to be sentenced in connection with Perry's 2023 death at his L.A. home. Fleming became a key informant and led authorities to a woman known as the "Ketamine Queen." She was sentenced last month to 15 years in prison.

The South Carolina Supreme Court has overturned Alex Murdaugh's murder conviction and ordered a new trial. Murdaugh comes from a prominent legal family in the state. He was found guilty in March 2023 for the murders of his wife and son two years prior, and sentenced to life in prison. But on Wednesday, the South Carolina Supreme Court ruled that the trial was tainted by the, quote, "improper influence of the former county clerk."

Murdaugh will remain in prison because he's also serving lengthy sentences after pleading guilty to dozens of financial crimes.

CNN's Randi Kaye has the latest on the case that shocked the community and grabbed national attention.

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ALEX MURDAUGH, FORMER ATTORNEY: I need the police and ambulance immediately. My wife and child have been shot badly.

UNIDENTIFIED FEMALE: What is your name?

MURDAUGH: My name is Alex Murdaugh.

RANDI KAYE, CNN CORRESPONDENT (voice-over): When former South Carolina lawyer Alex Murdaugh was convicted in 2023 of killing his wife Maggie, in 22-year-old son Paul, he was given two life sentences. Case closed until the county clerk from Murdaugh's trial suddenly made news.

BECKY HILL, FORMER COLLETON COUNTY CLERK OF COURT: There is no excuse for my mistakes. I am ashamed of them, and I will carry that shame with me for the rest of my life.

KAYE (voice-over): Former Colleton County clerk of courts Becky Hill later wrote a tell-all book about the trial. Murdaugh's attorneys argued she improperly influenced jury members during the trial by telling jurors to watch his body language the day Murdaugh took the stand, implying guilt, some jurors confirmed they'd heard those comments in affidavits and testimony.

UNIDENTIFIED FEMALE: Was your verdict influenced in any way by the communications of the clerk of court in this case?

UNIDENTIFIED FEMALE: Yes, ma'am.

UNIDENTIFIED FEMALE: And how was it influenced?

UNIDENTIFIED FEMALE: She made it seem like he was already guilty.

KAYE (voice-over): Hill pleaded guilty in December to the charges against her, including perjury and obstruction of justice. Murdaugh's attorneys earlier this year told the state Supreme Court that her comments had violated their client's right to a fair trial and requested a new trial.

DICK HARPOOTLIAN, MURDAUGH DEFENSE ATTORNEY: Nobody wants to do this again less than we do. What is Alex Murdaugh guaranteed to under the Sixth Amendment?

KAYE (voice-over): In its unanimous ruling granting the new trial, the South Carolina Supreme Court said Hill placed her fingers on the scales of justice, thereby denying Murdaugh his right to a fair trial by an impartial jury.

Murdaugh was a prominent lawyer whose trial captivated the nation. Disturbing details were revealed about his own alleged suicide-for- hire plot, financial fraud, drug addiction and the murders of Maggie and Paul.

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MURDAUGH: They did check him?

SGT. DANIEL GREENE, COLLETON COUNTY SHERIFF'S OFFICER: Yes, sir.

MURDAUGH: It's official that they're dead?

GREENE: Yes, sir. That's what it looks like.

KAYE (voice-over): Murdaugh admitted lying to investigators about his whereabouts just prior to the killings, but he's always insisted he did not kill his wife and son.

UNIDENTIFIED MALE: Did you take this gun or any gun like it and blow your son's brains out on June 7th or any day or any time?

MURDAUGH: No, I did not. Mr. Griffin, I didn't shoot my wife or my son any time.

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MICHAELSON: Our thanks to Randi Kaye for that report.

Newly released video shows a dramatic rescue operation after a small plane crashed on the coast on the ocean off of Florida. The 11 people on board all survived, then spent five hours in the water before they were found. U.S. Coast Guard and Air Force sent rescue aircraft with life rafts and survival gear. Then a military rescue team arrived, jumped into the water and hoisted everyone to safety in a helicopter.

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CAPT. ROY WHIPPLE, U.S. AIR FORCE PARARESCUE: And you can tell just by looking at them that, you know, they were in distress physically, mentally, emotionally. But for us, we trained to a higher, very high level to deal with this type of thing. So for us, it's just another day of work, another day of training. But this time instead of training, it was a real world.

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MICHAELSON: The air force captain says that the helicopter was down to five minutes' worth of fuel when the operation was over. The survivors were flown to a hospital in Melbourne, Florida. The cause of the crash is under investigation. Imagine five hours. How scary that would be.

Well, it sure looks strange, but this is actually a rite of passage for freshmen at the U.S. Naval Academy. Every freshman class has to scale the monument there and replace one of their classmates' caps with an upperclassmen's cap. It's not easy. The top of the monument has been slathered in vegetable shortening. Successfully completing the task means that they can no longer be called plebes by upperclassmen. This year's class completed the exercise in teamwork in just over two hours. The Naval Academy says the fastest time was about 20 minutes back in 1975.

I think we've been all downhill since then.

An enthusiastic welcome for the Princess of Wales. The British royal is on her first official visit to Italy. Why this trip is so significant for her. That's ahead. And we will go back live to Beijing for the latest on the Trump-Xi summit happening right now. We expect the motorcade to be on the move. Expect to see President Trump within the next 10 minutes or so.

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MICHAELSON: Britain's Princess of Wales returns to the global stage. Catherine is in Italy on her first official overseas trip since undergoing cancer treatment. She announced last year that she was in remission. An aide says this two-day solo visit is an important step in her recovery.

CNN royal correspondent Max Foster has more.

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MAX FOSTER, CNN ROYAL CORRESPONDENT (voice-over): Chants echoing of "Ciao, Kate," as the princess starts her comeback tour in northern Italy. Her first official overseas trip since undergoing cancer treatment. Thousands cramming into the piazza at Reggio Emilia to welcome her.

A princess greeting all the well-wishers that have turned out here in Italy. A princess coming to town doesn't happen every day. So much excitement about that. She has been in recovery, of course, from her cancer treatment. So this is a huge moment for her. The palace saying she's trying to balance her public work with her recovery.

UNIDENTIFIED FEMALE: It has been an honor to meet her.

FOSTER: What was your reaction when she came over?

UNIDENTIFIED FEMALE: Oh, she's amazing. I can't believe it, my eyes.

FOSTER (voice-over): The princess is here to learn about the internationally recognized Reggio approach, a philosophy of early childhood education built around creativity, relationships and hands- on discovery.

What did you just talk about with the princess? MARVA MAHMOUD, COUNCILOR FOR EDUCATIONAL POLICIES, MUNICIPALITY OF

REGGIO: I talk about our Reggio Emilia approach. I talk about our integration in integrative inclusive public system.

FOSTER (voice-over): Palace aides describe this trip as an important step in the princess's recovery journey, adding that she takes great joy from this work. The visit also marks Catherine's first official trip to Italy, a country she previously spent time in before university, though she admitted she needed to do work on her Italian.

UNIDENTIFIED FEMALE: And the way she has approached the city and the experience shows a real interest, not just something, the facade, but something deep, which is incredible.

FOSTER (voice-over): The princess believes early learning should be creative and prioritized in the same way as climate change.

CHRISTIAN GUY, ROYAL FOUNDATION CENTER FOR EARLY CHILDHOOD: She wants to point people to the importance of those first five years, and to work with others to make this a truly global, urgent issue. So it's on a par with climate, because unless we tackle this properly, we'll always be playing catch up.

FOSTER (voice-over): This is a global mission for someone coming back to the world stage with renewed vigor after a life-changing health event.

Max Foster, CNN, Reggio Emilia, Italy.

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MICHAELSON: Thanks for watching. The next hour of THE STORY IS begins right now with breaking news.

ANNOUNCER: This is CNN Breaking News.