The firm's new base, to be built in Chongqing, is set to produce as many as 15 million printers every year when completed.
It comes after HP merged its printer and PC businesses.
The manufacturing facility will be built in three stages and should be operational by 2015, when it will annually produce 40 million inkjet printers and 20 million laser printers along with the millions of ink cartridges.
The value of the products manufactured annually is expected to be $2.5 billion (£1.5 billion).
Meg Whitman, HP's chief executive officer, signed an official agreement for the factory this week and said that the merger of the company PC and printer divisions has fuelled its Chinese expansion plans.
HP already has manufacturing facilities in Chongqing, including a desktop and notebook plant.
Last month the company said it would bring together its PC and printer divisions as part of a major restructuring operation.
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