China will continue to borrow moderately from international financial institutions, a senior official with the State Development and Reform Commission said on Friday.

Zhang Xiaoqiang, deputy head of the top economic planning agency, said capital from international financial institutions should be used in a balanced way among different regions and that the funds should be used more efficiently.

The capital should be used to sharpen Chinese industries' international competitive edge and to push forward new industrial process, according to Zhang.

Meanwhile, the creditworthiness of Chinese borrowers should be raised, Zhang added.

"Chinese firms must continue to improve their use of foreign investment, but are also encouraged to make their own offshore investments and to get involved in transnational operations. This is an inevitable trend in the next stage of China's reform and opening up," Zhang stressed.

Data from the commission show that in 2006 China actually used 69.5 billion U.S. dollars in foreign capital, down 4.1 percent year-on-year, and invested abroad 16.1 billion U.S. dollars, up 31.6 percent.