The deal covers communication technologies, including 5G, and marks the resolution of a patent licensing dispute between the two firms, Reuters reports.

Also Read: Apple Set For Selling 'Made In India' iPhone 15 on Launch Day

In March, Huawei prosecuted Xiaomi for alleged infringement of four registered patents mainly related to wireless communication technology, smartphone photography, and screen lock technology.

In September, Huawei launched a smartphone with an advanced made-in-China processor amid escalating geopolitical tensions between the U.S. and China.

In July, Huawei said it received $560 million in royalty revenues in 2022.

Meanwhile, Apple slashed the prices for its iPhone 14 series in China following the launch of the iPhone 15 lineup.

Prices for the 128-gigabyte version of iPhone 14 were cut by 600 yuan to 5,399 yuan ($740.50), while the iPhone 14 Plus is selling at 5,999 yuan, down from 6,999 yuan at launch.

China flagged security problems with iPhones amid reports of Beijing expanding a ban on using the devices in sensitive departments to government-backed agencies and state companies.

Price Action: AAPL shares traded higher by 0.05% at $176.38 premarket on the last check Wednesday.