The National Development and Reform Commission approved the joint venture seven months after it was announced by the car manufacturers, Xinhua news agency said.
The 12bn yuan ($1.89bn) venture was approved in half the time the process usually takes in China because "Chery was familiar with the approval procedure and did not waste time", a company spokesman told the news agency.
The joint venture will set up a research and development facility and a manufacturing plant in the eastern city of Changshu in Jiangsu province.
It is scheduled to start operating in 2014 and will produce 130,000 vehicles a year, mainly Land Rovers and Jaguars but also some co-branded cars, Xinhua said.
Sales of Jaguar and Land Rover vehicles reached 53,000 in China in the first nine months of the year, 80% higher than the previous year according to figures from the China Association of Automobile Manufacturers.
Source: AFP via I-Net Bridge