China insists diplomacy can still resolve Iran nuclear issue

"We believe, in the current stage, there is still room to resolve this issue through negotiations," foreign ministry spokesman Qin Gang told reporters at a regular briefing.

"We call on all parties to show flexibility and allow a proper resolution of this issue through dialogue and negotiations. The international community should not abandon its efforts for peaceful negotiations. And all moves should be helpful to achieving this objective."

Qin's comments came after Iran's President Mahmoud Ahmadinejad said on Monday his nation would not comply with a UN Security Council demand that it freeze its uranium enrichment program by Friday.

The United States is pushing for the Council to consider a draft resolution that would oblige Iran to comply or face sanctions or possible military action.

Iran's top nuclear negotiator Ali Larijani said on Tuesday that his nation would suspend its relations with the UN's atomic watchdog, the International Atomic Energy Agency, if sanctions were imposed.

He also said Iran was expanding its uranium enrichment work and that the country would hide its nuclear program if it was attacked.

Qin's initial comments were made before Larijani spoke.

But Qin said afterwards that the Iranian negotiator's latest comments did not change China's position.

"We hope all sides will exercise restraint and flexibility and continue to hold dialogue and negotiations so as to create favorable conditions to properly resolve the Iranian nuclear issue," Qin said.

Iran says it only wants to enrich uranium to make reactor fuel to generate electricity, but the United States and other Western powers say the energy program is a cover for building nuclear weapons.

China has strong trade ties with Iran, particularly in the energy sector, and has steadfastly refused to take as hardline a stance on the nuclear issue as the United States would like.

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