Tsinghua will pay $2.3 billion for HP's China-based server, storage and technology services business, and will combine these with its own H3C Technologies to create a new business called H3C, HP said in a statement.
"Partnering with Tsinghua, one of China's most respected institutions, the new H3C will be able to drive even greater innovation for China, in China," said Meg Whitman, chief executive of HP.
The new H3C will have approximately 8,000 employees and approximately $3.1 billion in annual revenue, HP said.
HP will remain in China, it said: its HP China business will retain 100% ownership of its China-based enterprise services, software, HP Helion cloud, Aruba networks, printing and personal systems businesses.
HP's statement valued H3C business at $4.5 billion. The company had previously valued the unit at $5.5 billion, people with knowledge of the matter told Reuters last month.