BISHKEK, Aug. 15 (Xinhua) -- China advocates peaceful settlement of the Iranian nuclear issue through negotiations, Chinese President Hu Jintao said here Wednesday.

China understands the concerns of Iran over its rights to peaceful use of nuclear energy and stands for maintaining the international nuclear non-proliferation regime, Hu said in his talks with Iranian President Mahmoud Ahmadinejad.

It is in the interests of all relevant parties, including Iran, to resume negotiations at an early date and resolve the issue by peaceful means, he said.

Hu urged the Iranian side to size up the current situation and show certain flexibility in its efforts to properly address the remaining problems so as to ensure the issue to go forward in a correct direction.

Ahmadinejad, who was here to attend the annual summit of Shanghai Cooperation Organization (SCO) as an observer, expressed appreciation for China's proposal to resolve the Iranian nuclear issue through peaceful negotiations.

On using nuclear energy, he said Iran seeks no right beyond international laws and the regulations of the International Atomic Energy Agency (IAEA).

Iran has been in close contacts with the IAEA and will continue to maintain such cooperation with the international nuclear watchdog, he said, adding that Iran is willing to keep contacts with China and all relevant parties.

The SCO was found in Shanghai on June 15, 2001 by China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.

Mongolia, Iran, Pakistan and India were granted the status of observer by SCO members.