BEIJING, Oct 8 (AFP) - China said on Sunday it was "deeply concerned" by the weekend's dramatic escalation of violence between Israel and the Palestinians, urging all sides to show "calm".

"China is deeply concerned about the current escalation of tension and violence between Palestine and Israel," Beijing's foreign ministry said.

Beijing "calls on all parties concerned to remain calm and exercise restraint, cease fire immediately, protect civilians and prevent further deterioration of the situation", it said.

More than 200 Israelis died in a surprise large-scale attack by the Palestinian militant group Hamas on Saturday, the Israeli army said.

Prime Minister Benjamin Netanyahu vowed to reduce the group's Gaza hideouts to "rubble", with intense Israeli air strikes on the coastal enclave killing at least 232 Palestinians, Gaza officials said.

It is the conflict's bloodiest escalation in decades.

Beijing said Sunday that "the repeated clashes between Palestine and Israel fully demonstrate that the long-term stagnation of the peace process is unsustainable".

"The fundamental way out of the Palestinian-Israeli conflict lies in the implementation of the 'two-state solution' and the establishment of an independent Palestinian state," it added.

China called on the international community to "enhance its sense of urgency, increase its participation on the (resolution of the) Palestinian issue, promote the early resumption of peace talks between Palestine and Israel and seek a way for lasting peace."

"China will continue to make unremitting efforts with the international community to this end," it said.

Photo from Reuters