BEIJING, Aug 6 (Reuters) - China said it will implement a special tax policy in the Shanghai Free Trade Zone, the country's State Council or cabinet said on Tuesday.

It will also grant crude oil import licences to qualified companies and provide preferential tax policies for firms engaged in artificial intelligence, civil aviation, semiconductors and biopharmaceuticals.

It did not elaborate on whether the special policies will include a pilot plan to drop all duties in the free trade zone expected this year. China wants to position itself as a leader in promoting free trade as its trade row with the U.S. threatens to escalate into a full-blown economic war.

(Reporting by Huizhong Wu and Beijing Monitoring Desk; Editing by Shri Navaratnam)

((Huizhong.Wu@thomsonreuters.com;))

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