Beijing  - Chinese Premier Wen Jiabao said China is willing to mediate in talks over Iran's nuclear development, state media reported Saturday.

Wen said in a meeting with Parviz Davoodi, first vice president of Iran, that China respects Iran's development of a nuclear programme for non-aggressive purposes, the official Xinhua news agency said.

"China respects Iran's nuclear programme for peaceful purposes, resolutely safeguards the international non-proliferation system and advocates that the Iranian nuclear issue should be peacefully resolved through negotiation," Wen said Friday on the southern Chinese island of Hainan, where both leaders were attending the Bo'ao Forum for Asia, a regional economic meeting.

Davoodi was quoted as saying Iran was willing to resolve the nuclear issue and improve ties with other countries involved in the discussions on the basis of mutual respect but added, "We care more about actions."

The leaders expressed a willingness to explore cooperation in areas including energy, finance and trade. (dpa)