BUDAPEST/BEIJING - The European Union's (EU) head of foreign policy, Catherine Ashton, has said an "undervalued" yuan is one of the reasons for the EU's "large bilateral trade deficit" with China.

However, Chinese researchers said the EU's policy of restricting high-technology exports to China is the main reason for the deficit.

The comments from the EU's High Representative for Foreign Affairs and Security Policy came after the yuan hit a new record high of 6.4948 against the US dollar earlier this week.