China has welcomed North Korean leader Kim Jong-un's New Year's speech where he said he is open to talks with South Korea and hinted at the possibility of sending North Korean athletes to the Winter Olympics in the South.

Chinese Foreign Ministry spokesman Geng Shuang said during a regular news briefing on Tuesday that China has been watching the leaders of South and North Korea send signals to improve bilateral ties and Pyongyang express its intent to participate in the PyeongChang Olympics, calling it a good thing.

The spokesman said that Beijing welcomes and supports the two Koreas' efforts to improve their relations and to realize the denuclearization of the Korean Peninsula.

He said that the essence of issues surrounding the peninsula is about security, and the core issue is differences between North Korea and the U.S., adding China hopes the two sides will resume talks and build mutual trust, and ultimately settle issues through dialogue and negotiations.