China on Thursday welcomed Yemen's signing of a political settlement agreement, calling it an important step in the country's political transition process.

"China welcomes Yemeni parties' signing of a deal and its implementation mechanism initiated by the Gulf Cooperation Council," Foreign Ministry spokesman Liu Weimin said at a daily press briefing.

Liu's comments came after Yemeni President Ali Abdullah Saleh and related parties signed the Gulf-brokered power transfer deal in Saudi Arabia's capital Riyadh on Wednesday evening.

Under the deal, the president will resign and hand over power to his deputy, Abd-Rabbu Mansour Hadi, in return for immunity from prosecution. Hadi will then form an opposition-led national government and arrange presidential elections in 60 days.

The landmark signing came after almost nine months of political deadlock and protests calling for the ousting of the regime.

"China expects Yemeni parties to earnestly carry out the deal, restore social order at an early date and realize the country's stability and development," Liu said.