Chinese Foreign Ministry spokesman Liu Jianchao said here Thursday that China National Offshore Oil Corp (CNOOC)'s deal with Iran to develop the country's North Pars gas field is a business act between enterprises.

His comments came after Iran's oil ministry said Wednesday that it would sign a contract with CNOOC to develop Iran's North Pars gas field, adding that normal trade and economic cooperation between Iran and other relevant countries should not be undermined.

On Iran's nuclear issue, Liu said, "China holds that the current existing nuclear proliferation mechanism should be maintained and every country has the right to develop nuclear technology peacefully."

"We hope that Iran can actively respond to the requests and concerns of the international community and create favourable conditions for the resumption of talks," he said.

He said relevant UN Security Council resolutions and actions should be conducive to the resolution of the Iran nuclear issue through dialogue and negotiation.