There has been lots of confusion over the past week whether Trump has - or has not - spoken to Xi Jinping, to set trade negotiation talks in motion. According to Trump, he has and more than once...
Reporter: Have you spoken to President Xi since the tariffs?@POTUS: “I don’t want to comment on that but I’ve spoken to him many times.” pic.twitter.com/TAkK0EjXhA
— Rapid Response 47 (@RapidResponse47) April 25, 2025
... while China has repeatedly denied it has had any contact with its US counterparts, which is to be expected: admitting it is negotiating would be seen as a carte blanche for other countries to do the same, ending any attempts at negotiation "cartelization" Beijing may have tried to impose.
Unfortunately, the problem is that both sides tend to.... exaggerate reality, which makes a definitive conclusion either way challenging. And absent 3rd party confirmation either way, the market is forced to flip a coin to decide who is telling the truth. Unless, of course, there was 3rd party confirmation, which now appears to be the case.
According to an overnight report in The JoongAng, one of the three biggest newspapers in South Korea, and the newspaper of record for South Korea, it was "confirmed that the United States and China have begun behind-the-scenes contacts in relation to the 'tariff war' waged by US President Donald Trump."
Again, as noted above, after Trump said he had been in contact with China every day, the Chinese side, through a Foreign Ministry spokesperson briefing, said that Trump was effectively lying: "we have never had any consultations or negotiations with the United States, and (the related remarks) are all fake news.” The Chinese Ministry of Commerce also denied this, saying, “Economic and trade negotiations (with the United States) are not underway.”
However, in its overnight report, JoongAng Ilbo confirmed that at around 7 am ET on the 24th, a high-ranking official from the Chinese Ministry of Finance entered the Treasury building located right next to the White House in Washington D.C. accompanied by about 10 attendants.
According to the report, the exact identities of the senior officials leading the dozen or so entourage have not been confirmed, "but they were all wearing the identification required for entry into the G20 finance ministers and central bank governors meeting currently taking place in Washington." It was the same type of identification worn by Lan Poan, China’s Minister of Finance, when he met with Choi Sang-mok, the Minister of Strategy and Finance, who visited the U.S. the day before.
The Korean newspaper adds that "Chinese officials strongly blocked the press from taking photos of high-ranking officials entering the U.S. Treasury building this morning."
The Chinese officials then reportedly said that “we have no authority to block the freedom of the press,” but added “we have the right to refuse to allow our personnel to be photographed,” and demanded that the press delete all photos taken on their smartphones.
When the press asked him to reveal the identity of the person who had blocked the interview, he refused, saying, “I have no obligation to reveal my identity.” However, the ID card he was wearing had his name, photo, and nationality written as “China.”
The 'Treasury Department Meeting' between the US and China on this day began at around 7:00 AM, about an hour before Deputy Prime Minister Choi and Minister of Trade, Industry and Energy Ahn Duck-keun began the '2+2 Trade Consultation' with US Treasury Secretary Scott Besent and US Trade Representative (USTR) Jamison Greer. As a result, the Korea-US tariff negotiations were conducted following the US-China backroom contacts.
A diplomatic source told JoongAng Ilbo, “The fact that the treasury channels of both the U.S. and China are actually operating means that both countries have reached a critical point under domestic and international pressure due to the current retaliatory tariffs,” and predicted that “the results of the backroom negotiations between the two sides could be a major turning point in the tariff war.”
As for why China has been extremely secretive about the process, the source told the South Korean outlet that “since this tariff war is unfolding as a battle of pride with the leaders of both countries directly appearing, it may not be easy to create some kind of ‘win-win structure." He added that "the fact that China visited the U.S. Treasury Department in person could be an extremely sensitive issue for China."
Remarkably, Trump may have been telling the truth... again.
Source: The JoongAng
