The State Administration for Market Regulation approved the application as listed on its website.
Unicom Innovation Venture Capital, a subsidiary of China Unicom will take hold of 48% of the new company while the Shenzhen Tencent Industry Venture Capital will control 42%.
The remaining 10% will go to the company’s employees according to the documents.
The JV will centre around content delivery network – a geographically distributed network of servers that work together to speed up content distribution for users, and edge computing.
The deal is one between a public sector and private sector company, which has led many to question the development amid concerns over government influence on Chinese tech companies.
Tencent’s data via its popular WeChat app is viewed as key infrastructure with implications for national security.
The company made adjustments last year to separate the data gathered by its domestic app Eixin from the overseas version of WeChat.
Last month, Tencent denied speculation that China Mobile, another of the country’s biggest mobile operators was taking a stake in the company.
