Nanjing Automobile has announced its ambitions to be a global carmaker as it signed a letter of intent to make MG cars in America yesterday.
Investors from the state of Oklahoma have pledged their support for the plan which will see upgraded MG TF coupes assembled in the city of Ardmore.
The company is seeking to recruit senior executives from the American motor industry to oversee its operations in the US and China.
Duke Hale, who resigned earlier this year from his post as chief executive of Lotus's American operations, will head the operation as president and chief executive.
"We're positioning ourselves as a global car. Our vision is to try to create a world-class car in a world-class company," said Mr Hale who is a former executive at Volvo, Mazda, and Isuzu.
"The prospect of using 25 years of executive experience at Volvo, Mazda, Isuzu and Lotus to restore MG to the automotive landscape is an opportunity I just couldn't turn down.
"Now that we've finalised the important financial, manufacturing and product planning details of this new venture, I'm well along in recruiting a team of experienced auto industry executives to join me.
"A key ingredient in that effort has been to find the right home to build a completely new model for a global automotive enterprise. I'm confident that Oklahoma fits that description perfectly."
The letter of intent indicates three locations for the new range of MGs - a vehicle and export base in China, the Ardmore factory and an assembly plant at the former MG Rover factory at Long-bridge in Birmingham.
But in what could be seen as a blow for Longbridge's hopes to be the technical centre for t he whole company, a research and development facility will be housed at the University of Oklahoma in the nearby city of Norman.
A manufacturing facility and parts distribution centre at the Ardmore Air Park, while nearby Oklahoma City will be the site of the company's global headquarters for sales, marketing and distribution outside of Asia.
Governor Brad Henry said: "This is a major investment in Oklahoma that will mean hundreds of good-paying jobs."
At full capacity, MG Motors will create about 550 jobs in Oklahoma with an estimated payroll exceeding $30 million (£16.3 million).
Mr Hale described Oklahoma as "a well kept secret for commerce and business."
Oklahoma was one of several states the company looked at for the site of the plant.
He said the state's incentive package "was pretty darn aggressive" when compared to other states and included the quality jobs programme that offers tax breaks for job creation and a new business development fund.
Company officials were also impressed with the area's low cost-of-living and quality of life.
"The workforce situation is pretty favourable to us," said Mr Hale. "The city of Ardmore was tremendously cooperative."
The cost of the proposed 300,000-square-foot assembly plant and distribution
facility is not yet known, but the total capital investment in reviving the MG exceeds $2 billion, including MG's new operations in China, reopening Longbridge and building new facilities in Oklahoma.
The first MG is due to roll off the assembly line in Ard-more in the third quarter of 2008.
Coun Mike Whitby, leader of Birmingham council, said: "American involvement in the MG brand would be a further exciting boost to the plans being put forward by Nanjing Automobile Company to resume car production at Longbridge."