President Moon attended three rounds of inter-Korean summit held on April 27 and May 26 a year ago at Panmunjeom, North Korea and on September 18 to 20 at Pyongyang, North Korea to meet with Chairman Kim Jong-un of North Korea.
South Korea's Yonhap, without identifying its sources, said the two leaders held talks for an hour in which they discussed the second U.S.
Highlighting just how sensitive the date is, viewers outside of North Korea were able to see video of Rodman's performance, but domestic audiences were merely told that the former National Basketball Association player had "sung him a special song".
The meeting was followed by a dinner hosted by Xi and his wife, Yonhap said.
The visit comes amid reports that negotiations are under way for a second summit between Mr Kim and US President Donald Trump.
China is the isolated, nuclear-armed North's key diplomatic ally and main source of trade and aid, and the visit is likely to heighten speculation about a potential second summit between Kim and US President Donald Trump.
The North Korean leader said in his New Year's address last week that he might take a "new path" in negotiations if Trump didn't relax the sanctions squeezing his economy. "That should make America quite concerned".
Mr Kim will be in the country 7-10 January with his wife Ri Sol-ju, North Korean news agency KCNA said.
Chinese Vice-Premier Liu He made a surprise appearance on Monday to greet the U.S. delegation of mid-level officials, a sign of China's willingness to avert a full-blown trade war.
Trump also told reporters Sunday that US sanctions would be upheld "in full force and effect" pending "very positive" progress from Pyongyang on denuclearization. But he warned that he may seek an alternative path if US sanctions and pressure against the country continued.
But relations went through a rough patch in recent years as China backed United Nations sanctions over the North's nuclear tests.
Both Trump and Kim have alluded to a summit being in the works.
"As to whether this is used as a bargaining chip by China in trade talks, I believe more Americans would think so than Chinese do", the tweet went on to say.
"Their behaviour has demonstrated that as well and we appreciate that", Pompeo said.
Also, China and Russian Federation - both the permanent members of the UN Security Council - have been putting pressure on the United States to lift UN sanctions against North Korea.
North Korea's state-run Central Television also confirmed the visit, reporting that Kim started the four-day visit Monday at Xi's invitation.
Mr Kim is expected to stay at the highly-secure Diaoyutai State Guest House in the capital's west, with meetings held at the Great Hall of the People, the hulking seat of the legislature that sits next to Tiananmen Square.
The South Korean government said it welcomed Kim's trip and expressed hopes that his talks with the Chinese leader would help bring about denuclearization and advance the peace process on the Korean Peninsula.