Russia's compromise proposal on Iran's nuclear programme is still a "helpful attempt" to solve the current stand-off, Foreign Ministry spokesman Qin Gang said at a regular news briefing.
Iran resumed talks with Russia on Monday in Moscow over the proposals, one day after an Iranian diplomat said it had lost interest in the Russian plan.
Last December, Moscow offered to enrich uranium for Iranian power plants on Russian soil, saying that the proposal would secure Iran's legal nuclear rights while guaranteeing the peaceful use of the technology.
However, talks between Russia and Iran have so far not produced any breakthroughs.
"We support negotiations between Russia and Iran and hope they can still make progress," Qin said.
He urged all concerned parties to step up diplomatic efforts, saying "there is still room for diplomatic means to solve the crisis."
He added: "China hopes Iran will fully co-operate with the International Atomic Energy Agency and adopt confidence-building measures to create the conditions for a negotiated resolution."
China and Russia rejected proposals on Monday from the United States, Britain and France for a United Nations Security Council statement demanding Iran clear up suspicions about its nuclear programme. The five governments make up the council's permanent members, with power to veto UN actions.
In responding to a question about whether Australia will export uranium to China, Qin said the two countries held "positive attitudes" towards energy co-operation on the basis of "equality and mutual benefit."
Australia is reported to be close to an agreement on selling uranium to China, but Qin did not give an exact date on when the deal could be signed.
Meanwhile, a US Pacific Command delegation is expected to visit China this week as part of an agreement last year between US Secretary of Defence Donald Rumsfeld and his Chinese counterpart, Cao Gangchuan.
Qin said the military exchange visit follows a Sino-US commitment reached in October to strengthen mutual understanding in the military field.
"The plan was rich in content, covering various areas," he said. He added he anticipated regular exchanges by military leaders and representatives of military schools.
Source: China Daily