Chinese telecom-equipment maker ZTE Corp. has signed an agreement with carmaker Chery Automobile Co., Ltd. to develop auto-related applications for 5G technology, ZTE said Tuesday.

As part of its 5G efforts, ZTE has set up through one of its subsidiaries a joint venture with Chery, Anhui Qiying Smart Technology Co. Ltd., according to ZTE’s statement.

As the technological infrastructure of China’s 5G mobile internet network falls into place, the country’s telecom companies are rushing to roll out commercial applications of the technology, which is expected to significantly improve the speed of Internet of Things connections.

According to the agreement between ZTE and Chery, the two companies will jointly conduct research and development on the use of 5G technology in smart factory, warehousing and logistics, in addition to smart cars.

Contact reporter Teng Jing Xuan (jingxuanteng@caixin.com)