The Chinese government has approved an application from Walt Disney to build a theme park in Shanghai, paving the way for the company to establish a foothold in mainland China.

With an estimated cost of $3.5bn, the park would be one of the biggest investments in China by an international company.

Disney already has a theme park in Hong Kong but has long coveted a park in Shanghai, viewing the city as a perfect entry point for the mainland Chinese market. It has been in talks with officials in China for a decade but made its first official application to construct a park this year.