Alibaba and China Mobile have joined together to build internet-related services as web users transfer to mobile devices.

The partnership attempts to expand its effort to work closely in internet-related services, information infrastructure, marketing, and other important aspects of technology, which will give the two companies new opportunities in the cloud computing business. In addition, they said that they closely collaborate to work together on e-commerce and mobile payment. 

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Chinese telecom and internet companies are gradually keeping up with the technology as they gear towards mobile phones and tablets. In China, there are 710 million internet users and over 90 percent of these are using wireless devices to go online, according to Cyberspace Administration of China (CAC).

“As Alibaba expands its role beyond the e-commerce platform to provide other mobile services, its collaboration with China Mobile becomes more important. The two needs to be coordinated on the delivery of the mobile experience to consumers, especially in regards to advertising, browsing, search, navigation and payments,” Gil Luria, managing director at Wedbush Securities, said.

The partnership comes after the Chinese e-commerce giant signed a deal akin to China Unicom in November. On the other hand, China Mobile is doubling its efforts to expand the company’s presence in the internet industry.

China Mobile and Alibaba’s expansion into the cloud market, smart devices, and Internet of Things is sending a message that there is an increasing competition to other leading cloud and internet market provider worldwide including Amazon, Microsoft, IBM, and Alphabet.

According to a source familiar with the matter, the strategic partnership has no equity investment. Partnership details will be presented to the public during China Mobile Global Partner Conference in Guangzhou, China, on Dec. 19 to 20. 

TagsAlibaba, China Mobile, China Unicom, mobile, Cloud computing, information infrastructure, Internet of Things