"We welcome the US gesture to solve the issue through talks," foreign ministry spokesman Liu Jianchao said in China's first official reaction to the US proposal.

"At the current stage, the international community is focusing its energy on discussing a solution through diplomacy and political consultation."

"I believe we should make efforts in that direction. That is a wise choice and serves the interests of various parties."

In what has been regarded as a major policy shift, Washington said Wednesday it was ready to enter the European-led negotiations on Iran's nuclear ambitions if Tehran suspended uranium enrichment activities.

Diplomats in Washington said the move was linked to an effort to get China and Russia to ease categorical opposition to UN sanctions on Iran if negotiations stalled.

A senior US official said Wednesday that China and Russia had agreed to return to the UN Security Council to seek sanctions against Iran if international powers failed to reach an accord with Tehran.

China's Liu gave a less clear-cut position on Thursday.

"We are not supportive of the arbitrary use of sanctions in international issues," he said when asked if Beijing opposed sanctions against Iran under any circumstances.

Liu's comment reiterated previous Chinese foreign ministry statements on the issue, although it nevertheless appeared to leave open the door to a possible agreement on sanctions.

Liu also emphasized that China was prepared to work with the United States to resolve the Iranian issue.

"We stand ready to have close contacts and coordination with the United States and other nations and parties," Liu said.

"We hope that through the concerted efforts of various parties we can find a package solution acceptable to all."

Some observers have argued that China's reluctance to contemplate sanctions reflects its growing dependence on Iranian oil.

Liu on Thursday denied that was the case, cautioning against looking at it from "the narrow viewpoint of China safeguarding its own interests."

"China does have cooperation with Iran in the energy field, but... on this issue China does not pursue its own interests," he said.

"A political solution through dialogue is the position of China not only on this issue, but also on the Korean nuclear issue and the Iraqi issue."

Following the US offer, Iranian Foreign Minister Manouchehr Mottaki said in Tehran Thursday that his country was ready for talks with the United States, but rejected giving up its nuclear work.

"We support dialogue in a fair and unbiased atmosphere, but we will not talk about our undeniable and legitimate rights, because this is the right of our people according to international laws and treaties," he said.

When asked to comment on these remarks, China's Liu said it was up to the United States to characterize the Iranian attitude.