Microsoft (MSFT) and China TechFaith (CNTF) have signed an MOU to establish a strategic collaboration to promote the use of Windows Mobile and Windows Media technology.

According to the MOU, the two parties will work closely with each other in technology development and sales and marketing to further enhance cooperation in the wireless field.

The two companies will work together to improve the user experience and market share of Windows Mobile based devices, while reducing the time to market and lowering development costs.

Tim Chen, Corporate Vice President and CEO of Microsoft Greater China Region, said, "China is one of our most important markets in wireless area. And Windows Mobile has become one of the major operating systems for mobile devices. The strategic cooperation with TechFaith today is another milestone for Microsoft's development in China in the wireless area. Our strategy is to grow with China's information industry on a win-win basis. We wish to facilitate the entry of software and IT products and services from China-based companies into the international market."

Mr. Defu Dong, TechFaith's Chairman and CEO, said, "This is an important strategic partnership for us. We will be able to leverage our expertise to help Microsoft expand the Windows Mobile market. Through cooperation with Microsoft, TechFaith can provide better services and user experience to customers in China and fast growing international markets."

Based on the Windows Mobile and Windows Media technologies, the strategic partnership covers smartphone and entertainment handset product development, application development, collaborative sales and marketing, and an exchange of talent and technology.