But it was unclear if they would flourish in the low gravity of the Moon, which is about 17 per cent of that on Earth, and where temperatures range from lower than -173 °C to higher than 100 °C.
The success could mean that an Eden Project-style base, which would completely sustain itself, could be constructed on the Moon, with plants providing oxygen and food for astronauts.
"This is the first time humans have done biological growth experiments on the lunar surface," said Xie Gengxin, who led the design of the experiment.
"We have given consideration to future survival in space. Learning about these plants' growth in a low-gravity environment would allow us to lay the foundation for our future establishment of space base."
The 'mini lunar biosphere' experiment is a seven inch (18cm) metal bucket which holds air, water and soil and a special nutrient solution.
A small tube directs natural sunlight into the tin to help the plants and potato seeds grow.
Although known figuratively as the 'dark side' as it is unseen, the far side of the Moon receives almost equal sunlight to the near side, and the sky only seems dark because there is no atmosphere to diffract the Sun's rays.
The first sprouts were spotted emerging through a lattice like structure and published by China's People's Daily newspaper saying it marked 'the completion of humankind's first biological experiment on the Moon'.
Potato seeds and arabidopsis—a small flowering plant belonging to the mustard family - were also planted in the bucket, but haven't been seen so far, the university said.
The biosphere also contains silkworms in cocoons, and scientists are hoping they will hatch once the plants start producing enough oxygen for the little insects to wake up.
The silkworms will then create carbon dioxide and produce waste that will allow the plants to continue flourishing, Chinese scientists say.
Prof Gengxin said the cotton could eventually be used for clothing while the potatoes could be a food source for astronauts.
Chang'e-4 is also equipped with instruments developed by scientists from Sweden, Germany and China to study the lunar environment, cosmic radiation and the interaction between solar wind and the Moon's surface.
The lander also released a rover, dubbed Yutu-2 (Jade Rabbit), that will perform experiments in the Von Karman Crater, which will give clues about the formation of the Solar System.
The China National Space Administration said four more lunar missions are planned, confirming the launch of a probe by the end of the year to bring back samples from the moon.
China is hoping to land a human on the Moon by 2030 and is using the Chang'e missions to establish satellite communications networks for future base
