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.
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The talks descended into crisis on Friday when Canada's trade minister Chrystia Freeland walked out of meetings.
Police in New York are still investigating what the substance is and whether it could be harmful.
The Sherlock actor made the comment while he received an award for his humanitarian work.