BEIJING, April 7 (Xinhuanet) -- Chinese Foreign Ministry spokesman Qin Gang said here Thursday that China has made "remarkable efforts" to improve the Chinese exchange rate system and that a judgment on whether the currency has been undervalued should be made from the perspective of the country's position in the world economy.

    Qin said China has noted the recent discussions on China-US economic ties within the United States congress, as well as America's growing trade and financial deficits.

    "As we all know, if one country's fiscal deficit could not be made up by its own private savings, it has to go to foreign exchange inflows, which usually causes deficit problem in current account," Qin said.

    "The United States should look more into domestic means to restore its economic balance."

    Qin also noted that a report from the International Monetary Fund also considered that the RMB, China's currency, has not been undervalued, arguing that China has much more trade deficit with its Asian trading partners despite trade surplus from the United States.

    "Actually China scored a general trade balance last year, and suffered trade deficit in five months," Qin added.

    Qin said China has done a lot to improve the country's exchangerate system, referring to the acceleration of the reform of Chinese state-owned commercial banks, free trade on the RMB current account, less restrictions on capital accounts and the continuous opening of Chinese financial market.

    China has attracted more and more foreign investment institutions into Chinese securities market and the country is gradually removing restrictions on the financial business, Qin added.

    "We think China and the United States are two important economies and trading partners, and the disputes and conflicts in their trade should be resolved through consultations on an equal footing," Qin said. Enditem