Leaders from the Group of 20 major economies are scheduled to convene on Monday in Brazil for their annual summit, anticipating a transformation in the global landscape with the impending leadership of U.S. president-elect Donald Trump.

The agenda will cover trade, climate change, and international security, all of which will be influenced by significant policy shifts that Trump has promised to implement upon his inauguration in January, including tariffs and a commitment to negotiate an end to the conflict in Ukraine.

As U.S. President Joe Biden approaches the end of his term with only two months left in office, China’s President Xi Jinping is expected to play a pivotal role at the G20 summit, which is marked by geopolitical strains stemming from the ongoing conflicts in Gaza and Ukraine.

A German official, who spoke on the condition of anonymity to address the diplomatic challenges candidly, remarked, “Our concerns extend beyond geopolitics; China’s economic and financial influence is significant across various issues.”

Although China has aligned itself with Russia regarding Ukraine, Germany anticipates that Beijing may find it increasingly difficult to maintain this stance as the conflict has escalated to a “globalized” level, particularly with Russia’s enlistment of North Korean troops bringing the situation closer to China, according to another official.

Diplomats working on a joint statement for the summit’s leaders have faced challenges in reaching a consensus on how to tackle the intensifying war in Ukraine, struggling to formulate even a general appeal for peace that avoids placing blame on any party involved, sources indicate.

A significant airstrike by Russia on Ukraine on Sunday disrupted the fragile consensus that had been formed, prompting European diplomats to consider revising previously established language regarding global conflicts.

In response to the Russian aggression, the United States lifted earlier restrictions on Ukraine’s use of American-made weaponry, allowing strikes deep within Russian territory.

Brazilian officials acknowledged that their G20 agenda, which emphasizes sustainable development, taxing the wealthy, and combating poverty and hunger, may soon lose momentum as Trump begins to set new global priorities from the White House.

Additionally, Brazil’s efforts to reform global governance, particularly concerning multilateral financial institutions, could face challenges under a Trump administration, according to Brazilian officials.

“Trump does not value multilateralism. I don’t foresee many opportunities for a Trump administration to engage with these issues or show any interest,” a source from Brazil’s finance ministry shared with Reuters, requesting anonymity.

Xi is anticipated to promote China’s Belt & Road initiative, showcasing its economic influence. While Brazil has thus far opted not to participate in this global infrastructure project, there are optimistic expectations for other industrial collaborations as Xi concludes his visit with a state visit in Brasilia on Wednesday.

Brazil’s choice to abstain from participation has been described as “a significant setback for relations,” according to Li Xing, a professor at the Guangdong Institute of International Strategies, which is linked to China’s Ministry of Foreign Affairs. “China felt a deep sense of disappointment,” he remarked.

Concerns regarding a potential escalation in the U.S.-China trade conflict will intensify discussions surrounding trade at the G20, particularly as Trump intends to impose tariffs on imports from China and other countries.

Trump’s aggressive tax-cutting policies will complicate Brazil’s attempts to address the taxation of the ultra-wealthy, a priority for President Luiz Inacio Lula da Silva, who has included it in the G20 agenda.

Argentina’s new libertarian President, Javier Milei, has already established a firm stance on this matter. According to diplomats, Argentina’s representatives declined to endorse any reference to the issue in the summit’s joint statement.