Huawei signed an agreement with state-owned Changan Automobile to set up a joint-venture company to develop intelligent driving systems and components for connected vehicles.

In a statement, Huawei explained it plans to move its core smart car technologies and resources to the joint venture, which will be backed by an undisclosed investment from Changan.

Huawei rotating chair Eric Xu said during the signing ceremony it doesn’t intend to build cars but will use its ICT and marketing capabilities to help automotive companies produce and market vehicles. 

In addition to expanding its partnership with Changan, MD of Huawei’s Smart Car Solutions Yu Chengdong said the company will work with more strategic partners across the automotive segment.

Yu added: “We have always believed China needs to build an electrified intelligent open platform.”

In early 2021, Reuters suggested Huawei was in talks with the company about a production tie-up.