The news is a huge boost for the company, which employs thousands of workers in the United Kingdom at sites including Castle Bromwich and Solihull in the West Midlands and Halewood, Merseyside.
On Feb 27 the car firm said sales in China have been growing rapidly in recent years and the country had already become established as its fifth largest market in the world.
Bosses have signed an agreement called a memorandum of understanding with a business partner in the Far East.
The sale to China comes days after it was announced that a deal to save hundreds of jobs at the TATA-owned carmaker Jaguar Land Rover (JLR) is on the anvil.
According to Sky News, the deal with the unions should save JLR 60 million pounds.