A lot of parents asked about where to buy instruments for their kids. For guitars, I recommend this shop in Puxi:

World Wide Music

433 East Jin Ling Lu

Most of Jin Ling Lu is full of music shops, and you can take a look at other stores to compare prices! Be aware of fake instruments which I of course do not recommend.

Good guitar brands include Yamaha, Ibanez, Taylor and Aria.

I suggest to start with a Spanish guitar and after 2 – 3 years add/switch over to the electric guitar. Not the other way round! In any case, I do not recommend electric guitar for kids younger than 12.

Also ask the shop attendant to advise you on the right size of instrument for your child.