Daly last played the tournament in 2002, when it was held in Taiwan, finishing 11 strokes behind winner Padraig Harrington.
'China golf is really growing and it's an honor to be part of this world-class event,' Daly said. 'I haven't played this course before and hopefully the golf course suits my game and I can play really well there.'
The big-hitting Daly is getting over a rib injury, which occurred when he tried to stop in the middle of his swing at the Honda Classic when he heard a fan take a picture.
'I am feeling better now, still a little sore, but I should be fine by Shanghai,' Daly said.
Other champions scheduled to appear include Ernie Els, Colin Montgomerie and Paul Casey.