China is to raise tax rebates for certain exports starting next month.

The adjustment involves around 3,500 items from labour intensive industries such as garments and textile, to hi-tech and high value added sectors like anti-AIDS drugs and tempered glass.

These items account for nearly 26 percent of what's covered by the country's Customs Tariffs.

Yang Zhiyong, a professor with the Chinese Academy of Social Sciences, analyses the reasons why such an initiative was taken at this moment.

"Due to the current world financial crisis, many small and medium sized enterprises are experiencing difficulties surviving in the market. The appreciation of Yuan and rising production costs have also curbed China's exports."

Yang Zhiyong says the adjustments will have a positive effect on export enterprises.

"The rebates will ease operation pressures for export enterprises and enhance their competitiveness. The adjustments will also be conducive to increasing employment of labour intensive industries."

Since export industries will have more money as a result of the rebate increase, China is hoping they will be able to withstand the current world financial crisis.

Given the current financial situation, rising production costs and the appreciation of Yuan, China's export growth was down 4.8 percent from January to September compared with the same period last year.