An international student takes an exam in Hangzhou, East China's Zhejiang province in this May 8, 2014 file photo. [Photo by Long Wei/Asianewsphoto]

A new scholarship system offering more financial support to foreigners studying at Chinese universities was announced by the Ministry of Finance and the Ministry of Education on Wednesday.

International students will receive an increased subsidy backdated to Sept 1, 2014. The highest subsides are 66,200 yuan ($10,660) a year for undergraduates, 79,200 yuan ($12,753) for students pursuing a master degree and 99,800 yuan ($16,070) for students studying for a PhD.

The allowance will cover tuition, boarding fees, living expenses, travel costs and medical insurance. An additional subsidy of 5,000 yuan will be granted to students attending programs taught in English.

China began inviting students from a few Eastern European countries to study at its universities at the time of the founding of the People's Republic in 1949. Students from 190 countries and regions around the globe are now studying at schools of higher education across the country.

China aims to attract half a million international students by 2020, making it the biggest location for international students in Asia.