"Today, what we see is nuclear test, sanction, nuclear test and then sanction again," said Chinese Foreign Minister Wang Yi.
"This negative cycle should not continue. Because the ultimate end result could be something that no one can bear. It's a situation where everyone loses," he said.
Wang stressed that UN Security Council resolutions -- including sanctions -- against Pyongyang should be fully implemented, but added: "We cannot give up on seeking a resumption of talks."
"We hope and call on all parties to stop taking any action that would provoke tensions."
The North quit the now-stalled negotiations aimed at curbing its nuclear weapons programme in 2009, and soon afterwards carried out its second atomic test. The talks are hosted by China, and include South Korea, the United States, Russia, and Japan.
Beijing, the North's main diplomatic protector and economic benefactor, wants to revive negotiations, although Washington, Seoul and Tokyo all insist Pyongyang must first take some tangible steps towards denuclearisation.
North Korea's latest missile was launched Sunday near the western city of Kusong and flew east about 500 kilometres before falling into the Sea of Japan (East Sea), South Korea's defence ministry has said.
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