Huawei Technologies has entered an alliance with Intel that will provide cloud computing services to global telecom providers, the Chinese mobile and telecom firm said in a statement to Reuters on Thursday.
Under the agreement, the two companies will build a new data center and servers and provide software and security solutions under a global cloud computing network.
The partnership comes as U.S. and other foreign tech firms scramble for Chinese partners in a bid to gain access to the lucrative Chinese market despite tougher government scrutiny.
Cooperating with Chinese firms, including technology transfers and adopting the brands of their domestic counterparts, will allow foreign companies to make their products more palatable to consumers and authorities in the world's second-largest economy, Reuters said in their report.
"How do you stay in this market and do the least damage to your core business . . . that's the puzzle everybody is focusing on now," said James McGregor, chairman for advisory firm APCO China.
China's lawmakers have been openly pushing for the use of domestic instead of foreign technology, both as an attempt to boost the country's tech industry and as a response to disclosures made by U.S. National Security Agency (NSA) contractor Edward Snowden regarding widespread U.S. cybersurveillance activities.
Earlier this week, U.S. President Barack Obama warned that Beijing's proposed anti-terrorism law would prove detrimental to international businesses and demanded amendments.
"[The proposals are] in accordance with the principles of China's administrative law as well as international common practices, and won't affect Internet firms' reasonable interests," a Chinese parliamentary spokesman said in response on Wednesday.
Cloud computing is becoming a major focus area for Chinese businesses, with Premier Li Keqiang stating in his government work report delivered to the National People's Congress on Thursday that the government will support its development.
Intel and Huawei have had successful collaborations in the past, with the most recent being a data storage agreement in April the previous year and a server and cloud partnership in 2012.