China Says Sanctions Cannot Solve Iran Issue

China's foreign ministry said Thursday that sanctions could not "fundamentally solve" the issue of Iran's nuclear program and urged further dialogue to resolve the ongoing impasse.

The International Atomic Energy Agency disclosed Tuesday it had found "credible" intelligence showing Iran's interest in nuclear weapons -- the first time the U.N. nuclear watchdog has so explicitly supported claims initially raised by Israel and the United States.

Hong Lei, a spokesman for the Chinese foreign ministry, said: "Sanctions cannot fundamentally solve the Iran issue. Dialogue and negotiation are the right way out for the Iranian nuclear issue."

The IAEA should clarify the report in a "just and objective" way through stronger cooperation with Iran, Hong added.

The United States said Wednesday it was looking at ways to put "additional pressure" on Tehran following the IAEA report, while Russia ruled out backing new sanctions.

Meanwhile, France and Britain joined the U.S. call for stronger punishment.

"The pressing task now is that all parties concerned step up diplomatic efforts and push forward the P5+1 dialogue with Iran," Hong said, referring to talks between Tehran and the five permanent U.N. Security Council members plus Germany.

Iran has been subjected to four rounds of U.N. Security Council resolutions in retaliation for its nuclear program, the latest coming in June 2010 in a resolution expanding the arms embargo and barring the country from sensitive activities like uranium mining.

China and Russia have often sought to take a softer stance on Iran.

In recent years, China and Iran have become major economic partners, partly thanks to the withdrawal of Western companies in line with the sanctions against the Islamic republic.

In July, Iran and China, which now buys about 20 percent of Iranian crude, signed a series of agreements worth $4 billion for infrastructure projects in the water, mining, energy and industrial sectors.