Coventry University says it has become the primary academic partner of the Shanghai Automotive Industry Corporation (SAIC) in the UK.
It said a collaboration would see them working on advanced engineering research and development projects.
A memorandum of understanding has been signed between the two organisations, the university added.
The University of Birmingham recently announced plans to set up a research centre in China.
It has said the centre in Guangzhou would be used to identify and co-ordinate future joint research projects.
Coventry University said its projects with SAIC would focus on technology development and professional training.
It added that students would have the opportunity to work on projects with SAIC as part of the collaboration.
Members of SAIC’s advanced engineering team would also deliver guest lectures to undergraduates under the initiative, the university said.
Vice-chancellor Professor Madeleine Atkins said the collaboration represented an “exciting development in the relationship” between them “at a time when relations between the UK and China are going from strength to strength”.
She said: “We are delighted to help build on those links, and we look forward to passing on the benefits of such a strong industrial partnership to our students.”
Coventry University and SAIC already collaborate on a number of existing projects.
The automative company from China became the owner of MG Rover’s Longbridge plant in Birmingham after a merger in late 2007 with its smaller rival, Nanjing Automobile Group.