SIAC is increasingly popular with Chinese parties and the new office will help the centre to develop closer ties with companies and lawyers in mainland China, it said.
Chinese parties have consistently ranked among the top five foreign users of SIAC in the past five years, and were the top foreign users in 2012 and 2014, SIAC said.
The new office will work with mainland Chinese arbitration commissions to promote the development of international arbitration and best practice with training workshops and networking events, the centre said.
Lucien Wong, chairman of SIAC's board said: "Opening an office in the Shanghai FTZ will enhance our existing ties with the legal and business communities in China by allowing us to interact more closely with users and other key players in international arbitration in China."
The Shanghai office will be led by Sophia Feng, a China-qualified lawyer who current runs SIAC’s China operations. This will be the third overseas office for SIAC, which opened offices in Mumbai, India, and Seoul, South Korea, in 2013.
The Hong Kong International Arbitration Centre (HKIAC) opened its first office in mainland China in November, also in the China (Shanghai) Pilot Free Trade Zone.
The Chinese State Council said in April 2015 that it would "support the introduction of internationally renowned commercial dispute resolution institutions" as part of its plan for further development of the free trade zone, SIAC said.