President Xi Jinping is requesting its allies to calm down as South Korea and Japan intend to join naval exercises with the U.S.
The USS Carl Vinson, a U.S. aircraft carrier, docked on the Korean peninsula upon orders from President Donald Trump.
North Korea, on the other hand, has conducted live fire exercises to show force against the U.S.
Japan announced that they will be launching two destroyers to join the drills that they will be carrying out with South Korea.
China's foreign ministry released a statement saying that Xi "hopes that all relevant sides exercise restraint, and avoid doing anything to worsen the tense situation on the peninsula."
Xi added, "The nuclear issue can only be resolved quickly with all relevant countries pulling in the same direction, and China is willing to work with all parties, including the United States, to ensure peace."
Japanese Prime Minister Shinzo Abe said that he and Trump have talked over the phone and agreed that they will exercise restraint on the escalating crisis with North Korea.
Abe said, "We agreed to strongly demand that North Korea, which is repeating its provocation, show restraint."
"We will maintain close contact with the United States, keep a high level of vigilance and respond firmly," Abe added.
The North Korea state media published a full-page editorial which said, "There is no limit to the strike power of the People's Army armed with our style of cutting-edge military equipment including various precision and miniaturized nuclear weapons and submarine-launched ballistic missiles."
The live fire exercises of Pyongyang occurred when the U.S. submarine docked in South Korea. The exercises were conducted in commemoration of the 85th founding anniversary of the People's Army.
Trump is calling for the U.N. to impose sanctions on North Korea for posing a global security threat.
China is blaming North Korea for "perilously overestimating their own strength and underestimating the hazards they are brewing for themselves."