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Redmond and Chinese Internet company BesTV will explore the possibilities of family-friendly gaming through a joint venture.
The console will bring with it more than 70 games, including exclusive content, free-to-play games, and "blockbuster" titles, says Microsoft.
A month after Microsoft's announcement that it would be selling the Xbox One in China, Sony has revealed similar plans for the PS4.
This brings the number of countries that will have the Xbox One for sale in September up to 42.
The Xbox One is set to debut in China this September after the country's decision to remove a 13 year ban on gaming consoles.
The country's third biggest mobile carrier has scored exclusive rights to sell Microsoft's game console.