The Chinese government has approved the joint venture between Jaguar Land Rover and Chery Automobile, according to reports, paving the way for JLR to build and sell its vehicles in China.

The deal had been made public earlier this year, but was subject to government approval. Jaguar Land Rover is set to build a manufacturing plant near Shanghai – construction is due to be completed in 2014, with production planned to begin the following year.

The company, owned by Tata Motors, hasn’t officially stated which model will be built at the factory, although it has previously hinted that it is likely to be either the Land Rover Freelander or Evoque.

The factory is set to churn out 77,000 Land Rovers, as well as 23,000 Chery cars and 30,000 Jaguar vehicles by 2016. Production in China will be in addition to JLR’s existing output, and the company stated it had no intention of moving its manufacturing base out of the UK.

Building vehicles in China means that JLR can avoid import duties, but more importantly enable it to build offerings designed specifically for the Chinese market, the reports add. The cooperation will also see the building of a research and development facility as well as an engine production plant.