The sale price represents the equivalent of a 38% cut on plans to offload the whole of the subsidiary back in June 2012 for $60 million, which hit the rocks after regulator approval was not forthcoming.
A source at the Indian turbine manufacturer said: "The lower price reflects the state of the market and the fact that we're not selling the whole stake.
"We wanted to reduce our obligations in China but also maintain a footprint in the country, so we modified our approach."
A new joint venture has been formed as a result, with Suzlon continuing to act as "technology partner" to "manage manufacturing and quality".
The decision to sell came after the company reiterated its long-term commitment to its China operations in 2011, despite the withdrawal from the country of its subsidiary Repower.
Suzlon has been going through tough times over the past few years, with the firm being forced to go through corporate debt restructuring as it struggles with its finances.