Raising the quality of life and easing restrictions on visas will be critical to ensuring Shanghai realizes its goal to become a global centre, according to a European Union Chamber of Commerce report.

The Chamber released the second edition of the Shanghai Position Paper, evaluating the East China city's progress.

It also contains recommendations from European businesses that have invested in the city on how it can work towards become a global business centre.

Head of the Shanghai chapter of the European Chamber, Michael Adams, said remaining attractive to international talent was critical to Shanghai's success.

"Ensuring that it does so, will require raising the quality of life in the city and further opening the regime for the issuance of visas, working permits and hukou," Adams said.

The paper discusses how Shanghai can increase its standing as a global innovation centre, foster its manufacturing competitiveness, become more important for global finance, improve its quality of life and gather the best global talent in the city.

"In order for it to succeed in its ambitious goal to be a global centre, Shanghai will need the strong support and participation of foreign businesses, investment and talent," Adams said.