Exclusive | Shanghai vice mayor Ai Baojun to head up free-trade zone later this month

Shanghai is scheduled to officially launch its free-trade zone, the first on the mainland, this month with a city vice-mayor heading up the project.

Government sources familiar with the plan told the that it will launch on September 27, when senior central government officials will fly to the city to attend a ceremony planned to mark the occasion.

Ai Baojun, currently a vice-mayor of Shanghai in charge of the city's economic and industrial development, will be named the head of the new commission to oversee the development of the free-trade zone, according to the sources.

Ai used to head Shanghai-based Baosteel, China's biggest steelmaker, before he was named vice-mayor in late 2007. He would keep the vice-mayor post but spend more time on the free-trade zone, said the sources.

The new role for Ai is seen as a big responsibility that could pave the way for his elevation to more important positions in the future.

Premier Li Keqiang could assign one of his direct subordinates, most likely a vice-premier, to work closely with Ai to fast-track decisions on the zone.

"There will be a green channel for the free-trade zone to communicate directly with the cabinet so a lot of bureaucracy can be cut out and decisions can be implemented rapidly," said one source who declined to be named because of the political sensitivity of the matter.