Chinese Foreign Minister Yang Jiechi has warned that threatening sanctions on Iran will derail diplomatic efforts to resolve the dispute over Tehran's nuclear programme.
The Chinese minister said he wanted to see more direct talks between Iran and the international community over Tehran's nuclear ambitions.
Western powers are pushing for a fourth round of UN sanctions against Iran to try to force it to enter into negotiations over its nuclear ambitions.
China, which buys a lot of oil from Iran, appears unwilling to put more restrictions on Tehran, complicating the chances of getting a broad agreement within the United Nations Security Council.
Minister Yang said: 'To talk about sanctions at the moment will complicate the situation and might stand in the way of finding a diplomatic solution.'
Western governments claim that Iran wants to produce nuclear weapons.
Tehran insists its atomic programme is purely for peaceful purposes, but is restricting inspections of its sites by the UN International Atomic Energy Agency (IAEA).
Yesterday, the US urged Iran to follow up on a surprise U-turn from President Mahmoud Ahmadinejad by formally committing to a UN-brokered deal to swap enriched uranium for nuclear fuel.
But there was also alarm and the renewed threat of new sanctions as Mr Ahmadinejad's announcement was quickly followed by a rocket launch deemed by the White House 'a provocative act.'
Mr Ahmadinejad confused his critics by suggesting that a deal struck last October envisaging Iran sending some 70% of its low-enriched uranium abroad was suddenly back on.
Conscious his remarks could simply be timed to stave off new sanctions at an upcoming meeting of world powers, the White House urged Iran to contact the International Atomic Energy Agency, the UN watchdog that brokered the deal.
