China on Thursday voiced serious concern over the recent plan of Israel to build housing units in East Jerusalem.

The decision would set new obstacles for the Middle East peace process, said Foreign Ministry spokesman Qin Gang, adding China was seriously concerned and opposed to it.

He urged the Israeli side to take concrete measures to resume the Palestinian-Israeli mutual trust, and create favorable conditions for resumed talks between the two sides.

Israel gave green light on Tuesday to a plan to build some 900 new housing units in the Jerusalem neighborhood of Gilo, located beyond the Green Line, which drew widespread international criticism.