China has called for discussions between the major EU powers and Iran as over Tehran's nuclear programme.
The five permanent members of the UN Security Council, plus Germany, are expected to meet in London tomorrow to discuss a possible third round of UN sanctions aimed at pressuring Iran to halt nuclear work that has both civilian and military uses.
China, a veto-holding member of the Security Council, has generally opposed sanctions and has called for more talks. But the United States has been pushing for what one US official called more "tough-minded diplomacy".
"We support diplomatic negotiations to resolve the issue peacefully," a Chinese foreign ministry spokesman said. "The issue is now in a difficult situation.
"We support reconciliation between Iran and the IAEA [International Atomic Energy Agency] and we also support consultations between Iran and the EU3 [France, Germany and Britain] so as to move in the direction of a peaceful solution."
Last month, Washington announced new US sanctions on Iran, prompting China to say that it was opposed to applying sanctions "too rashly in international relations".
Iran warned the United States yesterday that it would find itself in a "quagmire deeper than Iraq" if it attacked the country.