Critics had voiced opposition over security concernspublished at 11:10 GMT
11:10 GMT
China bought the site of the proposed new embassy, at Royal Mint Court, near the Tower of London, for £255m in 2018.
At 20,000 square metres, the complex would be the biggest embassy in Europe if built.
The decision on whether to approve the new embassy was under close scrutiny because of concerns about the security implications of the plan, including the location, size and design of the building.
The site is close to fibre optic cables carrying communications to and from financial institutions in the City of London.
Concerns have been raised that Chinese operatives could use the site to tap into the cables and eavesdrop.
Further questions were raised last year about the nature of the threat posed by Beijing, following the collapse of the case against two men accused of spying for China.
