"Every administration since Nixon has not fallen for this, and it's the kind of ploy that I used to see on sophomore papers on East Asia in college", said Green, the former Bush administration official, who added that the bartering could send shivers up the spines of U.S. allies.
Last week, the ministry twice said it had no information to provide on whether Wu would be going to North Korea.
Mr Trump and General McMaster said they hoped China would convince its neighbour, which depends on Beijing to prop up its trades and finances, to stop the crisis escalating.
Hours after North Korea paraded its weaponry and attempted a missile launch, President Trump's national security adviser said the US leader will not allow Kim Jong Un's regime to have the capacity to threaten the U.S.
The national security adviser said the latest failed test "fits into a pattern of provocative and destabilizing and threatening behavior on the part of the North Korean regime".
China sent the Trump administration "positive signals" that it will increase economic sanctions to pressure ally North Korea to abandon its development of nuclear weapons and missiles, a threat that has raised the prospect of a military confrontation with the United States, the State Department revealed Monday.
In this enlarged crop of a Saturday, April 15, 2017, photo distributed by the North Korean government, the logo of Sinotruk, a Chinese company, is seen on a truck carrying Polaris submarine launched ballistic missiles (SLBM) during a parade to celebrate the 105th birth anniversary of Kim Il Sung, the country's late founder, in Pyongyang, North Korea. Pence, expressing impatience with the speed and willingness of the regime to end its nuclear weapons program, said Trump was hopeful that China would use its "extraordinary levers" to pressure Pyongyang to abandon its weapons.
Pyongyang then rolled out its deadly arsenal on Saturday. North Korea considered Bushes words just short of declaring war.
While it remains unclear whether Trump's comments mesh with the administration's more fleshed-out policy, they have drawn raised eyebrows from former White House officials, who are sounding the alarm. Mr Pence - on a ten-day trip to Asia - told United States troops: 'This morning's provocation is just the latest reminder of the risks each one of you face every day in the defence of the freedom of the people of South Korea and the defence of America in this part of the world'.
Thousands of US and South Korean troops, tanks and other weaponry had been deployed last month in their biggest-ever jont military exercises.
Zhongnanhai sells the trucks to a dealer in the border city of Dandong before they are resold to North Korea, he said.
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