French law firm Gide Loyrette Nouel and Chinese outfit Commerce & Finance Law Offices have advised on Renault's entry into the Chinese market via a £1.3bn (CNY7.7bn) joint venture arrangement.

The French car maker, which is among a handful of large motor companies still without a presence in China, announced earlier this month that it had received approval from the Beijing authorities to tie up with state-owned Dongfeng Motor Corporation, one of biggest automobile manufacturers in the country.

According to the contract, the two companies will establish a new joint venture entity known as Dongfeng Renault Automotive Company, which will produce 150,000 multiple purpose vehicles and engines per year.

Gide acted for Renault on the deal, with a team led by corporate partner and head of the Beijing office Thomas Urlacher, alongside Paris-based project finance partner Stephane Vernay.

At the end of last year, the firm also advised the carmaker on a similar joint venture in Algeria.

Acting for Dongfeng, which is headquartered in Wuhan and ranked the second-largest Chinese automaker, was Chinese firm Commerce & Finance Law Offices, with a team led by corporate partner Guo Zhi.

The firm also advised the company on a new project with Nissan earlier this year, which focused on its medium-duty commercial vehicle business and the heavy-duty commercial vehicle business.

China's car industry is currently the largest in the world, selling tens of millions of cars every year.

A report by McKinsey & Company forecasts that sales will reach 22 million in 2020, bigger than either the European or North American markets.

Other car makers who have already tapped the country for its opportunities in Honda, Nissan and Toyota.