The Chinese authorities have approved a proposed joint venture between Renault and Dongfeng, one of the biggest car makers in China.
The deal is said to be worth around 7.76 billion yuan (around £778 million) where Dongfeng Renault Automotive will make around 150,000 vehicles and engines a year.
Under Chinese law, foreign car manufacturers looking to build cars in China must do so with a Chinese partner.
A joint-statement from the two car makers said:"Dongfeng Motor and Renault welcome the approval from the Chinese authorities for their joint venture.
"Renault, already present on the imported vehicles market in China, is partnering with a heavyweight of the Chinese automotive industry. This alliance will allow Renault to deploy its ambitious strategy in the world's largest automotive market."