Microsoft is set to launch the Xbox 360 in China within the next few months, with the software giant already in talks with internet service providers, PC manufacturers and sales agents.
According to a report by Reuters, the product will need to be approved by the Chinese government, and will be scrutinised by the culture and information ministries.
The local government is notoriously strict when approving the sale of videogame content in the region - which may prove to be Microsoft's biggest obstacle to penetrating the market.
Online gaming is very popular in the region, with 120 million people having regular access to the internet.
"We take a long-term approach to each market and continue to evaluate the China market for opportunities," said Andres Vejarano, regional marketing director for Microsoft in Greater China.
Microsoft has previously stated a desire to launch its new console in the Chinese market, but has so far not committed to a timeframe.