"Circulating a draft resolution on Iran does not mean the door of diplomacy is closed, and we believe that the dialogue, diplomacy and negotiations are the best way to address the Iranian nuclear issue," Li Baodong, the Chinese permanent representative to the United Nations, said here Tuesday.

Li made the remarks to reporters shortly after the U.S. delegation introduced the draft in the 15-nation Security Council. The draft was circulated in the Council after an agreement was reached among the five permanent members of the Security Council -- Britain, China, France, Russia and the United States -- plus Germany in the wake of rounds of negotiations in New York since April.

"We think the introduction of the draft represents an opportunity," he said. "It is our hope that all the parties concerned can grasp the opportunity to work for a proper solution to the Iranian issue through diplomacy."

"We welcome and attach importance to the agreement that Iran signed with Brazil and Turkey, and this is a positive step forward in the right direction," Li said.

Iran signed the deal in Tehran with Brazil and Turkey on Monday. Under the agreement, Iran will ship most of its low-enriched uranium to Turkey in exchange for higher-grade uranium fuel needed for its research reactor in Tehran.

"The proper solution to the Iranian issue means the efforts to avoid intensifying the situation," he said. "To maintain peace and stability in the Gulf region is an issue of our utmost concern. We think peace and stability is in the interest of all parties concerned."

"To this end, China has been actively, seriously and constructively participated in the consultations with other permanent members (of the Security Council) in the Five Plus One on the draft resolution," he said. "We will continue to work with other parties concerned to find a proper solution to this issue through diplomatic means."

The draft reflects "the dual-track strategy," which contains words on sanctions and also includes the statement to support and encourage the diplomatic efforts on the Iranian nuclear issue, diplomatic sources said here.

"On the sanctions against Iran, we uphold our principles," Li said. "Sanctions should not affect the normal supply of energy, the normal trade and business exchanges, nor should the sanctions affect the normal life of the Iranian people."

"Therefore, efforts should be made to restrict sanctions," he said.