Beijing's appeal came as a war of words between Donald Trump and Kim Jong-Un escalated, with the young North Korean leader calling the 71-year-old American president a "mentally deranged US dotard".
On the sidelines of the UN General Assembly in New York, North Korean Foreign Minister Ri Yong-ho told reporters Pyongyang might now consider detonating a hydrogen bomb outside its territory.
China bans new business with N Korea
"The situation on the Korean Peninsula now is complicated and sensitive," Chinese foreign ministry spokesperson Lu Kang told a regular press briefing in Beijing.
"All relevant parties should exercise restraint instead of provoking each other," he said.
China, Russia urge end to North Korea vicious cycle
"We believe that only if relevant parties meet each other halfway can they really solve the Korean Peninsula issue and truly realise peace and stability on the Korean Peninsula."
China has repeatedly called for peace talks, suggesting that Pyongyang halt its nuclear activities in return for the United States suspending military drills in the region.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ