The partnership deal has been approved by China and was sealed on July 31, 2017, with which McDonald's largest franchise outside the USA is to be created.
"China will soon become our largest market outside of the United States", said Steve Easterbrook, McDonald's President and CEO.
McDonald's will almost double the number of restaurants in China in the next five years, eventually surpassing Japan as the hamburger chain's second-biggest market outside the U.S.
McDonald's will open 2,000 new restaurants in mainland China and Hong Kong by the end of 2022, bringing the total number to 4,500.
It is understood that CITIC will foot much of the bill for the aggressive expansion into mostly third and fourth-tier cities and towns in China. To meet its ambitious goals, the company is also seeking to boost its delivery hub coverage to over three-quarters of Chinese restaurants and introduce its "Experience of the Future" initiative, described as a modern dining experience offering digitalized and more personalized services, to over 90 percent of its fast food chains in the country.
Menu innovation is to be one of the key focus points for the new partnership. I have great confidence in our new partnership to unlock the full growth potential of China.
Zhang Yichen, Chairman of the Board of Directors for the new McDonald's China, commented: "The partnership will strengthen McDonald's China's entrepreneurial spirit, driven by ownership at the local level".
Earlier in the year, the USA fast food chain agreed to sell most of its China and Hong Kong business to CITIC and Carlyle for up to US$2.1 billion.
About McDonald'sMcDonald's is the world's leading global foodservice retailer with over 37,000 locations in over 100 countries. McDonald's retained a 20 percent stake in the business.