China proposed "double suspension" to defuse the looming crisis on the Korean Peninsula, Chinese Foreign Minister Wang Yi said Wednesday.

"As a first step, the Democratic People's Republic of Korea (DPRK) may suspend its nuclear and missile activities in exchange for the suspension of large-scale U.S.-Republic of Korea military exercises," Wang told a press conference on the sidelines of the annual session of the National People's Congress.

This will help the parties to break out of the security dilemma and return to the negotiating table, Wang said.

"We may follow the dual-track approach of denuclearizing the peninsula on the one hand and establishing a peace mechanism on the other," he added.