The Chinese premier said Iran's flexibility will help create conditions for an early resumption of the talks and the final settlement of the Iranian nuclear issue.

Wen made these remarks in meeting with Iranian Vice President Ali Saidlu here on the sidelines of the fifth Prime Ministers' Meeting of the Shanghai Cooperation Organization (SCO).

Wen said China supports the international mechanism of nuclear non-proliferation and understands Iran's concern about its right to peaceful use of nuclear energy.

The Chinese premier said China holds that all parties concerned should increase contact and enhance mutual trust to solve the issue through diplomatic negotiations.

He said the Iranian nuclear issue is in a critical period. He added that the progress made in the talks between Iran and the European Union several days ago has demonstrated that there is still hope for peaceful settlement of this issue.

He said China is willing to continue discussion with Iran.

At the meeting, the two sides expressed their readiness to further develop relations between the two countries based on equality and mutual benefit.

The Iranian vice president said most countries in the world stands for peaceful settlement of the Iranian nuclear issue through diplomatic efforts and Iran is making efforts to this direction.

Saidlu said Iran's nuclear activity is transparent and for peaceful purposes.

Iran is ready to conduct negotiations with parties concerned and will continue to keep contact with China.

The SCO groups China, Russia, Uzbekistan, Tajikistan, Kyrgyzstan and Kazakhstan. Mongolia, India, Iran and Pakistan are the observers of the regional organization.