He said at a regular press conference here Tuesday that setting up working groups is a way to implement the September joint statement, and China hopes all sides can agree on the form and number of the groups through consultation.

Qin said the working group on financial issues is subject to the agreement of the Democratic People's Republic of Korea (DPRK) and the United States.

China has stated its position on financial sanctions, and hopes the parties can handle the issue on a factual and legal basis, without disturbing the six-party talks process, Qin said.

He added the Chinese side will take an objective and balanced attitude, taking into consideration all parties' concerns, listening to their suggestions and opinions and seeking common ground among them.

Qin did not disclose China's proposals, saying the situation is changing all the time and the parties are still consulting with one another.

Launched in 2003, the nuclear talks involving China, the DPRK, the United States, the Republic of Korea (ROK), Japan and Russia have gone through five rounds.

However, the talks stalled in November 2005 after the DPRK walked out of the negotiations in response to U.S. sanctions.

Phase two of the fifth round began on Dec. 18.

At a plenary session Monday morning, all sides stressed they would strive for positive results, seeking to resolve the nuclear standoff in line with the principle of "action-for-action". They undertook to map out ways to implement the joint statement adopted by all parties during the fourth round of talks in September 2005.

According to the terms of the joint statement, the DPRK agreed to abandon its nuclear program in exchange for economic aid and security guarantees.