The Lingang area of the China (Shanghai) Pilot Free Trade Zone. Photo: VCG

Shanghai's Lingang area, a newly launched section of the free trade zone in Pudong New Area, attempts to boost local business development and attract investment by building a regional commercial center with a large duty-free store inside.

It plans to construct 600,000 square meters of new commercial facilities within three years to form the area's future commercial center, according to a series of business promoting policies that Lingang authority released on Thursday.

Lingang will offer substantial financial support to the commercial center. Construction projects related to the center will be able to enjoy as much as 50 million yuan ($7.04 million) of government subsidies - not more than 30 percent of its actual total investment, outlined the policies.

A 30,000-squaremeter duty-free shop will be set up near Dishui Lake Metro Station, in a bid to attract various global brands, including high-end Michelin-rated restaurants.

For renowned domestic and international brands that promise to settle in this area for five years or longer, the Lingang government will provide each with at most 2 million yuan of assisting fund.

Apart from building an offline commercial hub, Lingang also encourages the development of a local online economy. It plans to gather 100 innovative digital enterprises and build more than 10 digital brands within three years, said Wu Xiaohua, deputy director of the area's management committee, on Thursday.

The Lingang area of the China (Shanghai) Pilot Free Trade Zone (FTZ) will be benchmarked against high international standards to compete with the top FTZs to ensure the opening up of the Chinese economy.