``We hope that the Israeli side would understand the circumstances of the Palestinian side, adopt a flexible and practical attitude and continue the peace talks,'' Chinese premier Zhu Rongji told visiting Israeli Prime Minister Benjamin Netanyahu.

Israel and the Palestinians should achieve a reconciliation and live in peace, Zhu said.

He said China understood all relevant parties' concern for their security interests.

He commented that the key to breaking the current peace talks deadlock hinged on all relevant parties' earnest implementation of the agreed resolutions and understanding.

Zhu expressed China's readiness to collaborate with Israel to further promote bilateral relations on the basis of mutual benefit.