Shanghai will scrap all regulatory barriers for foreign investors in manufacturing sectors to boost confidence in China's economy amid rising trade tensions with the US, reports Hong Kong's South China Morning Post.

Mayor Gong Zheng announced the move on Sunday, stating that reforms have been deepened to allow full market access for overseas firms in electric vehicles, biotechnology, hospitals and value-added telecommunications services.

Speaking after the International Business Leaders' Advisory Council meeting, Mr Gong said Shanghai's openness remains its greatest strength and that institutional reforms are being implemented in an orderly manner.

The mayor did not comment directly on the impact of escalating US-China trade tensions, including President Donald Trump's recent threat to impose 100 per cent tariffs on Chinese goods.