Social gaming firm Rekoo is looking to invest in London's Tech City cluster, the first high-profile Chinese company to open a base in the city.
Rekoo said the London office would be used to market its games to consumers across the rest of the continent, while collaborating with other European and UK-based associates to bring out their products in Asia.
Rekoo's VP Lisa Pan said:"Companies in the UK produce very high quality games, and being in London means we can attract world-class talent and find new business opportunities with UK and European developers," Pan said.
The Mayor of London Boris Johnson said:"As a leading light in China's tech scene, Rekoo's decision is another huge boost for the capital's digital industries.
"Making the most of the great minds, talented workforce, and market opportunities within immediate access of our Tech City makes absolute sense which is why London is fast becoming the digital capital of the world."
As part of the ongoing six day trade mission to China, the Mayor is promoting business collaborations and investment in London.
Chancellor of the Exchequer George Osborne said:"There are huge opportunities for us to work with Chinese companies in tech, and this announcement proves that Britain is a fantastic destination from them to locate and grow," Osborne said.
Osborne and the UK Trade & Investment (UKTI) are also leading a trade delegation that display some of the top small and medium technology firms in London.
Chinese telecoms equipment maker Huawei is also planning to build a new £125m Research & Development (R&D) facility in the UK to carry out works on smartphone designs, software and broadband technologies.