The institute, a partnership between Birmingham City University and Wuhan Textile University, is the first non-profit Chinese-foreign cooperatively run educational institution in the province to offer undergraduate programmes.
The university is one of just 63 universities in the world to be given the green light to set up a jointly run higher education institute in China.
Over the next seven years more than 3,500 students are expected to study at the institute in Wuhan, which will offer degrees in subjects including art, design and media.
Professor Bashir Makhoul, pro-vice-chancellor at Birmingham City University addressed guests at the launch last week, showcasing the benefits a degree from the institute can provide.
He said: “Students who choose the institute will have the chance to gain an internationally recognised UK Bachelor degree that ranks alongside the very best in the world.
“They will also benefit from a unique alliance of two universities with a shared vision that offers innovative and high quality teaching.
"China's creative arts sector has grown more than 60 times over the last 10 years, now accounting for 4% of the country’s overall wealth and helping to diversify its markets.
“Our leading professors and practitioners will work to ensure graduates are equipped with the necessary skills and a global outlook, making them best placed to thrive in this growing industry."
Wuhan Textile University is already recognised for its creative arts and has been crowned China's top fashion university for the last 15 years.
Furthermore, Wuhan is ranked 31 globally for fashion and places within the top five in Asia, according to the 'Textile Fashion' journal.