China proposed a three-phase solution on Sunday for Myanmar's Rakhine state starting with a cease-fire, which is basically in place.

Foreign Minister Wang Yi said China believed the issue can be addressed by finding a solution acceptable to both Myanmar and Bangladesh, where many from Rakhine state have fled, through consultations.

While the key is to prevent flare-ups, the second phase should be bilateral talks between the two countries to find a workable solution, Wang said, adding that he hoped the two sides could sign and implement a repatriation agreement that has almost been reached.