China repeats opposition to unilateral sanctions on Iran

BEIJING (Reuters) - China on Wednesday restated its opposition to the U.S.-led push for unilateral sanctions on Iran over Tehran's nuclear program and said the crisis should be resolved through diplomacy, as Iran lashed out with threats against Washington.

Iran threatened on Tuesday to take action if the U.S. Navy moves an aircraft carrier into the Gulf, Tehran's most aggressive statement yet after weeks of saber-rattling as new U.S. and European Union financial sanctions take a toll on its economy.

"China has consistently believed that sanctions are not the correct way to ease tensions or resolve the issue of Iran's nuclear program," Foreign Ministry spokesman Hong Lei told a news briefing.

"The correct path is dialogue and negotiations. China opposes putting domestic law above international law to impose unilateral sanctions on another country," he said.

China has long defended its oil and trade ties with Iran and criticized Western sanctions that could frustrate those ties.

Hong added: "China and Iran have normal and transparent trade and energy exchanges that do not contravene U.N. Security Council resolutions. The dealings in question should not be affected (by sanctions)."

President Barack Obama on the weekend authorized a law imposing sanctions on financial institutions that deal with Iran's central bank, its main clearinghouse for oil exports.

That U.S. sanctions threat could be a worry for China, the biggest buyer of Iranian oil, followed by India and Japan. Only Saudi Arabia and Angola sell more crude than Iran to China.

As a permanent member of the U.N. Security Council, China can veto resolutions mandating sanctions. But Beijing has voted for them, while working to ensure its ties are not threatened.

China has, however, also criticized the United States and EU for imposing separate sanctions on Iran and said they should take no steps reaching beyond the U.N. resolutions.

Last year, Chinese investment ventures in Iranian oil and gas slowed, apparently prompted by commercial friction and, at least partly, by Beijing's efforts to cut the risk of Chinese oil firms being hit by U.S. sanctions.

(Reporting by Ben Blanchard; Editing by Ron Popeski)