An engine production facility as well as a research and development centre will built as part of the venture, with a main manufacturing plant expected by 2014.
The work can go ahead after the Chinese government approved a licence for the new partnership.
The company is looking to expand in the China's booming economy, with sales of Jaguars and Land Rover rising by 80 per cent in China so far this year.
More top news
Transport Secretary Chris Grayling reportedly wants the publicly-owned firm to share responsibility for running tracks with private firms.
Attorney General Jeremy Wright QC said High Court ruling dismissed the public's referendum vote as 'merely' a political event.
Northern and eastern areas will see a touch of frost at first, but most places will see sunshine.