China has joined the chorus of international criticism on a decision by the Jerusalem municipality to approve construction of 900 housing units in the capital's southeastern neighborhood of Gilo. The Chinese Foreign Ministry said on Thursday that the decision poses new obstacles to the Middle East peace process.

Gilo, built in 1971, is located on land that the Palestinian Authority insists belongs to PA Arabs and that it intends to use, along with similar parts of Jerusalem -- including the neighborhoods of Ramat Eshkol, French Hill, Ramot, Har Homa, the Old City and other areas -- as the capital of new PA state.