China has warned world powers against threatening Iran with sanctions over its nuclear energy program, saying such a move could prove to be counterproductive.

Chinese Foreign Minister Yang Jiechi said on Thursday that threats of sanctions will make it harder to find a diplomatic solution to the Western disputes over Tehran's nuclear program.

"To talk about sanctions at the moment will complicate the situation and might stand in the way of finding a diplomatic solution," Yang said during a visit to France.

He added that Beijing wants the continuation of direct talks between Tehran and the so-called P5+1 — the five permanent members of the UN Security Council plus Germany.

He made the comment ahead of a meeting with French President Nicolas Sarkozy in Paris.

While the West is resolute on imposing more sanction on Iran, China and Russia insist that dialogue is the best way to resolve the issue.

"All countries, Iran included if they obey by IAEA rules, have a right to a peaceful use of nuclear energy," said Yang.

Washington and its allies accuse Tehran of pursuing a military nuclear program. The International Atomic Energy Agency (IAEA), however, has repeatedly said that it has found no evidence supporting the allegation.

The IAEA has conducted numerous inspections of Iran's nuclear facilities, confirming the non-diversion of nuclear material in the country's functional and under-construction plants.

Iran also denies the allegation, saying that it needs nuclear energy to produce electricity to meet the country's growing demand