Beijing, June 28, IRNA -- Chinese President Xi Jinping and German Chancellor Angela Merkel agreed that Iran nuclear issue should be resolved peacefully and that further escalation of tension should be avoided.

Xi and Merkel met on the sidelines of a Group of 20 leaders’ meeting in Japan, the report said, adding that Xi told Merkel German companies were welcome to continue investing in China, Xinhua news agency reported.

The annual summit of the Group of 20 nations is underway in Osaka, Japan. At the top of the agenda is the ongoing trade war between China and the United States, the world's two biggest economies.

The G20 is an international leaders' forum comprising 19 countries and the European Union.

Collectively, the grouping represents more than 80 percent of the world's economic output and two-thirds of its people. Its primary aim is to promote international financial stability.

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