Intel teamed up with Alibaba, the Chinese e-commerce company, yesterday to build the first mobile commerce platform in China.

Intel will embed mobile modules in its XScale-architecture-based mobile phone chips and supply them to phone makers, so that phone users can trade on the online Alibaba platform. The first batch of the phones will be released by Motorola and Chinese phone maker Dopod Communications Corporation.

In return, Alibaba will open its customer resources to Intel and encourage customers to trade via the phones embedded with Intel's chips. Alibaba will also encourage the users on its customer-to-customer e-commerce website Taobao.com to trade via phones embedded with Intel's chips.