The Lingang expansion of the Shanghai free trade zone (FTZ) is officially unveiled on Aug 20, 2019. [Photo by Gao Erqiang/China Daily]

Companies specializing in key industries, such as integrated circuits, artificial intelligence, biomedicine and civil aviation, will be granted a 15 percent business income tax for five years after their registration in the area. Under the country's tax system, the business income tax rate usually is 25 percent.

Lingang, which is in the farthest southeastern part of east Shanghai's Pudong New Area, has provided many manufacturing industry success stories since the municipal government started to build an industrial cluster in 2003. Tesla's gigafactory in Shanghai, which attracted over 50 billion yuan of investment, is also in the Lingang Special Area.