Shanghai to use tax-free policies to build city into world-class shopping hub

Shanghai will use the first pilot program of tax-free policies to attract more Chinese, who now shop overseas, to do their shopping in the city which has high ambitions to build itself into a world-class shopping hub.

A recently-released three-year action plan to create a Shanghai Shopping brand will see the city develop into a testing field and a competitive hub for new business by 2020. The plan will foster consumption as a tool to grow the economy steadily into a high-quality one.

"The city will take various measures to build a global consumer market and create commercial activities to match with a global city of excellence to foster an international consumption city with global influence," said Shang Yuying, director of the Shanghai Commerce Commission, at a press conference on Tuesday.

Although Shanghai has been among the first choice of leading brands to launch their new products, it still trails  international cities like New York and Paris for consumption.

Shanghai will unveil a program launch ceremony at the end of May to entice more brands to debut or release new products in the city first, Shang said.

The city will nurture commercial zones in various downtown landmark areas and shopping streets featuring traditional Shanghai style to stimulate a convenient consumption environment so that its draw to global customers will be enhanced.