BEIJING, May 16 (Xinhua) -- China called on the DPRK and the United States to create good conditions for the meeting between their leaders and make active efforts to achieve denuclearization and lasting peace on the Korean Peninsula.

State media of the Democratic People's Republic of Korea (DPRK) said early Wednesday that Pyongyang would suspend high-level talks with the Republic of Korea (ROK) indefinitely and threatened to withdraw from a scheduled meeting with the United States over an ongoing U.S.-ROK joint military exercise.

Chinese Foreign Ministry spokesperson Lu Kang said the situation on the Korean Peninsula is moving toward dialogue and amelioration, and the hard-won situation accords with the common interests of all parties, as well as the expectations of the international community.

Facing important opportunities in a political settlement for the peninsula, relevant parties, especially the DPRK and the United States, should work together and show their goodwill and sincerity to create good conditions for the meeting between their leaders, he said.

China also hopes the DPRK and the ROK will follow the spirit of the Panmunjom Declaration, understand and respect each other's reasonable concerns to build trust and improve ties, Lu said.

Lu called on the parties concerned to avoid taking steps that would escalate the situation. He also called for creating favorable conditions for dialogue and consultations.