U. S. Secretary of State Hillary Clinton has said that China understands the "gravity" of the situation arising from the sinking of the South Korean navy ship.

Her government will be working with China to respond to the "provocative action" by North Korea, which has been blamed by international investigators for the March 26 incident in the Yellow Sea in which 46 South Korean sailors died, Clinton said, speaking to reporters in Beijing Tuesday after the conclusion of the two-day China-U. S. Strategic and Economic Dialogues.

China, North Korea's main ally and its major benefactor, has thus far called for restraint in dealing with situation as tensions worsen on the the Korean Peninsula.

Clinton said in remarks posted on the U. S. State Department Web site, "We expect to be working together with China in responding to North Korea's provocative action, and promoting stability in the region."

China "shares with us the goal of a denuclearized Korean Peninsula and a period of careful consideration ... to determine the best way forward in dealing with North Korea as a result of this latest incident," she further said.

Clinton said the U. S. delegation in Beijing held "productive and detailed discussions" with Chinese leaders on North Korea.

She further added, "The Chinese understand the gravity of this situation. And (Chinese) Premier Wen (Jiabao) will be traveling to (South Korea) on Friday to consult with President Lee (Myung-bak). We pledged to stay in very close consultation." (With Inputs from Agencies)