Tesco, Britain's largest retailer, plans to establish a joint venture in China, a bid to control its capital expenditure in global expansion, the Financial Times reported Monday.

The supermarket chain that came here in 2004 is seeking partners in China for the venture, the report said, citing three sources close to the matter.

Analysts said China Resources Company is the most suitable choice, as the State-controlled group owns CR Vanguard and Ole' supermarket chains, the report said.

Tesco currently owns about 130 stores in China, including 13 outlets that opened in 2012.