Xiaomi and Nokia have signed a business cooperation agreement and a multi-year patent licensing agreement covering cross-licensing of standard essential patents for mobile networks.

At the same time, Xiaomi will acquire some patent assets of Nokia as a part of the transaction. Full financial details of the transaction were not released.

Rajeev Suri, chairman and chief executive officer of Nokia, said that Xiaomi is one of the leading smartphone manufacturers and they are glad to reach the agreements with Xiaomi. They are also looking forward to cooperating with Xiaomi in many projects with strategic meanings.

Under the business cooperation agreement signed by the two parties, Nokia will provide network infrastructure equipment to deliver high capacity, low power requirements that are needed by companies that are processing and delivering lots of data. The two firms will also work together on technologies focused on data centers. In addition, they will explore opportunities for further cooperation in areas such as the Internet of Things, augmented and virtual reality, and artificial intelligence.

Lei Jun, chairman and chief executive officer of Xiaomi, said that Xiaomi is committed to building sustainable, long-term partnerships with global technology leaders. Their collaboration with Nokia will enable them to tap Nokia's leadership in building large, high performance networks and formidable strength in software and services, as they seek to create even more remarkable products and services that deliver the best user experience to their Mi fans worldwide,

Xiaomi has expanded into over 30 countries and regions around the world. Apart from smartphones, the Chinese company is also a leading Internet of Things manufacturer and the number of devices bases on Xiaomi's IoT platform tops over 60 million.