Renault has finally won approval from the Chinese authorities to begin production there in a joint venture with the Dongfeng Motor Group.
That comes after almost a decade of negotiations with China’s second-biggest carmaker.
The new venture will produce cars and engines under both companies’ brands, with initial annual capacity of 150,000 vehicles.
It is good news for Renault’s growth prospects but could complicate efforts by its struggling French rival Peugeot to expand its own partnership with Dongfeng.
Renault is a latecomer to China, where fast-growing demand has helped other European manufacturers offset poor sales at home.