In order to apply for a Schengen visa at Consulate General of Italy in Shanghai your main destination (the longest part of your stay) must be Italy. If you plan to visit several Schengen countries and the main destination cannot be determined, you must apply for the visa at the Embassy/Consulate of the Member State that is your first entry to the Schengen area.
Consulate General of Italy in Shanghai handles applications for:
Chinese citizens are allowed to apply for their visa in the Application Center closer to their living place, without distinction regarding the family book or residence permit or working place. This rule does not apply for foreign citizens, Chinese citizens living abroad or applicants who submit documents for family reunion or work visa.
Schengen visas (C type) are all the visa for a period of stay of maximum 90 days and include: tourism, business, short term study, short term work, transit, visit family, sport.
National visas (D type) include all the categories of visa for a period of stay of over 90 days: study, work, family reunion, religious, re-entry. When you obtain a D visa, once you arrive in Italy, you should request a residence permit at the local police station within 8 days from your arrival.
The Visa category chosen by the applicant must be made by the applicant him/herself. The visa application centers staff is not allowed to making the choice for you.