Chinese computing giant Huawei has confirmed plans for a $200 million (£125m) research and development base in the UK.
George Osborne hailed the investment in Britain as he visited the company's Shenzhen headquarters as part of his trip to China.
Social gaming company Rekoo has also said it will become the first high-profile Chinese firm to open an office in London's Tech City.
Mr Osborne said: "China's growth in high tech industries is a huge opportunity for Britain - we have some of the most innovative tech companies in the world and China offers them a huge export market.
"I am delighted to be introducing some of China's tech giants in Shenzen to some of Britain's leading tech entrepreneurs.
"Huawei and Rekoo's investment into the UK is a great testament to Britain's tech industry and I am here to make sure that relationship goes from strength to strength."
Huawei employs some 80 engineers in its existing UK R&D office in Ipswich. it is expected to employ a total of 300 by 2017.
Chief executive Ren Zhengfei said: "The UK is home to some of the best high-tech professionals in the world.
"Their creativity is a major asset to our R&D efforts, helping us produce the most advanced and competitive telecoms and broadband services available.
"Combined with an open and free-trade economy, this makes it a very good investment environment for Huawei."
