The foreign ministry however also said in a statement that Hu had warned Obama in an overnight call not to further antagonise Beijing on the sensitive issues of Taiwan and Tibet.

Their conversation came amid strains in the two countries' relationship over those issues and a range of trade disputes and as Western powers seek to get Beijing to back new sanctions on Iran over its controversial nuclear programme.

Hu told Obama both sides should "respect each other's core interests and major concerns and properly handle differences and sensitive issues" and make "unremitting efforts towards cooperative, positive and comprehensive" ties.

"Maintaining healthy and stable development of Sino-US economic and trade relations is in the common interest of both sides," the ministry quoted Hu as saying.

However, "Hu stressed the Taiwan and Tibet issues concern China's sovereignty, territorial integrity, and China's core interests, and properly dealing with these issues is key to ensuring the healthy and stable development of Sino-US relations," the statement said.

Obama angered China by announcing in January the US would go ahead with the sale of a 6.4-billion-dollar arms package to Taiwan and by meeting personally with the Dalai Lama at the White House in February.

The White House said Obama called on Hu to work with him on the Iranian nuclear standoff and welcomed Hu's attendance at an international summit on nuclear security to be held in Washington later this month.

Hu said China "opposes nuclear proliferation and nuclear terrorism and supports international efforts to strengthen cooperation on nuclear safety," and would work to make the nuclear security summit a success.

The Chinese statement contained no explicit comment on Beijing's intentions on Iran.

US officials have said China has agreed to join separate talks at the United Nations on toughening sanctions on Iran.

China has previously opposed the imposition of tough new UN sanctions on the Islamic republic, and said Thursday it was working for a "peaceful resolution" of the Iranian nuclear standoff.

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