A staff member tests the speed with a Huawei 5G mobile phone at Huawei 5G Innovation and Experience Center in London, Britain, on Jan. 28, 2020. (Xinhua/Han Yan)

Huawei Technologies on Friday inked an agreement with the Shenzhen Nanshan district government in South China's Guangdong Province to build an industry demonstration zone, in an attempt to transform the city into a model chipsets production base. 

Huawei and Nanshen district will make joint efforts to establish a new-generation information technology (IT) innovation center and speed up the application of technologies like blockchain, artificial intelligence, big data and 5G, according to the agreement.

The two sides will explore fintech solutions and drive the development of key financial scenario applications such as bank, insurance, securities and third-party payments based on Huawei Kunpeng structure. 

The agreement is vital for the economic growth of Nanshan District, which is an innovative technology district, said Wang Qiang, secretary of the Nanshan District Party Committee. 

Huawei is expected to play to its global industry and tech advantage through efforts like removing development barriers, gathering industries and attracting talent to build a national Kunpeng industrial and ecological chain, according to Wang.

Ma Haixu, president of Huawei's intelligent computing business unit, said Huawei focuses on computing architecture innovation and builds core competitiveness of the computing industry on Kunpeng processors and Shengteng AI processors.

The firm develops Kunpeng ecosystem via open source for hardware and software, which provides strong security for digital economy, Ma said, noting that the cooperation will accelerate new-generation IT development in Shenzhen and help it build into a key financial eco-base that will also become a national benchmark.

The construction of the Shenzhen Kunpeng industrial zone is vital for the local government in driving its industrial development. The Shenzhen government signed an agreement with Huawei in September 2019 to transform the city into a demonstration area for the country's server chip industry, featuring leading core technologies, rich application scenarios and strong industrial competitiveness.