This is the first investment in China for Blackstone, since Antony Leung was hired to improve the groups' prospects in the area.
There is an option for the investment group to increase its stake to 20 per cent if the company meets its profit targets.
Speaking to Bloomberg, a Shanghai-based analyst at China International Capital, Shi Xuesong, said: "The company is a rising star in China, especially after it developed links with the Chinese government."
Authorization for the bid will still have to be given by the Chinese, which could be complicated as there are strict rules in place in relation to overseas investment.
Blackstone is expected to launch an initial public offering of BlueStar in Shanghai or Hong Kong by the end of 2008.
BlueStar bought Drakkar Holdings, the company behind French production of animal-nutrition products, for $460 million in 2005 and a silicone unit of Rhodia SA last year.
Blackstone's overseas influence is expected to enable BlueStar to improve its business in France.
The speciality chemical producer has chemicals in electronics, mobile phone keypads, and car parts.