Iran and oil-famished China agreed on favouring a diplomatic solution to international confrontation over Tehran?s nuclear plans at a meeting yesterday, the Chinese foreign ministry said.

Foreign Minister Li Zhaoxing met Iranian Deputy Foreign Minister Abbas Araghchi in Beijing, the Chinese foreign ministry said in a brief statement.

The UN Security Council has told Iran to suspend atomic fuel work by August 31 or face possible sanctions. The West suspects Iran is seeking the ability to make nuclear weapons, but Tehran says its only aim is to generate electricity.

The United States has threatened swift action on sanctions after August 31 if Iran does not heed the UN demand. But Russia and China, both major trading partners with Iran, have been unwilling to impose sanctions and could frustrate such a move in the Security Council.