China encourages Iran to pursue nuclear talks

BEIJING (Reuters) - China wants Iran and other powers to pursue contacts aimed at eventually defusing a long-running dispute over Tehran's nuclear activities, a Foreign Ministry spokeswoman said on Thursday.

The United States, Russia, China, France, Germany and Britain said on Wednesday they would ask EU foreign policy chief Javier Solana to invite Tehran to talks to find "a diplomatic solution" to Iran's nuclear program.

China, host of six-party talks aimed at ending North Korea's nuclear program, is a close energy and trade partner with Iran, and Foreign Ministry spokeswoman Jiang Yu said her government welcomed the signs of renewed engagement.

It has a long-standing policy of favoring negotiated solutions to nuclear disputes with both Iran and North Korea. And the warm words on Thursday suggest it sees renewed hopes of progress.

"We are glad to see an improvement in relations between the United States and Iran," Jiang told a news conference.

"We also support any suggestions to appropriately solve the Iran nuclear issue though negotiations and dialogue. We encourage Iran and other parties to have active contacts to seek an all-round, appropriate and long-term solution to the Iran nuclear issue."

As a big oil customer of Iran and veto-wielding permanent member of the U.N. Security Council, China has been a focus of efforts to overcome the standoff with Iran.

China has backed past limited sanctions on Iran, but resisted steps that would threaten their energy and economic ties. Iran is China's third biggest supplier of imported crude oil, behind Saudi Arabia and Angola.

Breaking with past U.S. policy of shunning direct talks with Iran, President Barack Obama's administration said the United States would join in nuclear discussions with Iran from now on.

The big powers' statement was markedly more conciliatory than in the past when Western officials often threatened to ratchet up sanctions against Iran or did not rule out military action.

"NEW BEGINNING"

Last month, Obama offered a "new beginning" of diplomatic engagement with Iran.

Until now, U.S. policy has made any negotiations with Iran about its nuclear program conditional on Tehran giving up uranium enrichment work the West believes is aimed at building an atomic bomb-making capability.

Iran, the world's fourth-largest oil exporter, says its nuclear program is only aimed at generating electricity.

Iran celebrates its National Nuclear Day on Thursday when analysts expect President Mahmoud Ahmadinejad to announce Iran has mastered the final stage of nuclear fuel production.

China is bound by U.N. Security Council sanctions resolutions forbidding support for or contact with individuals or companies linked to Iran's missile and nuclear programs. This week, the U.S. government slapped sanctions on a Chinese metals company and six Iranian companies suspected of collaborating on a scheme to transfer missile and nuclear technology from China to Iran.

Jiang said China had very strict export controls to prevent nuclear proliferation.

"But we oppose related U.S. departments using their domestic law to sanction a Chinese company," she added.

(Reporting by Ben Blanchard; Editing by Nick Macfie and Dean Yates)