"The current situation on the Korean peninsula is highly sensitive and fragile, which requires the directly concerned parties including South Korea and US to make joint efforts to ease the tensions," Chinese foreign ministry spokeswoman Hua Chunying said.
Beijing has pleaded for a resumption of long-dormant six-nation talks to peacefully resolve the nuclear crisis.
But its proposal for North Korea to suspend its arms programmes in return for the United States to halt military drills in the region has been ignored.
Tens of thousands of South Korean and US troops are taking part in the "Ulchi Freedom Guardian" joint military drills, a largely computer-simulated exercise that runs for two weeks in the South.
Around 17,500 US troops will participate in the drills - a cutback from last year.
When asked to comment on the troop cutback, Hua only said that China has "noted the reduction of the US forces", but reiterated that military exercises would not help to reduce tensions.
Only weeks ago it said it was considering firing a salvo of missiles towards the US Pacific territory of Guam.
Pyongyang tested two intercontinental ballistic missiles (ICBM) last month that appeared to bring much of the US within range.
That sparked a grim warning by President Donald Trump that Washington could rain "fire and fury" on the North.
Leader Kim Jong-Un last week delayed the Guam strike plan, but warned it could go ahead depending on Washington's next move.
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