Chinese tech giant Huawei will help Baiyao Group, a renowned traditional Chinese medicine company, to develop new drugs using artificial intelligence, Yicai reported on July 25.

Huawei and Baiyao signed a three-year cooperation agreement for Huawei to provide AI technologies involving molecular design and disease databases, the pharmaceutical company said in a statement on July 25. 

Baiyao is famous among global users of traditional Chinese medicine based in Kunming, southwestern China’s Yunnan Province. Founded in 1971, the company was named after a drug developed by its founder in the early 20th century to stop wounds from bleeding. 

Baiyao will prioritize using Huawei’s AI solutions to build its information and communications technology infrastructure. Consequently, Huawei may become a core ICT supplier for Baiyao and its affiliates, the firm added.

The partnership will bring the two companies’ advantages in resources and technologies into full play, Baiyao said. It will advance the in-depth application of AI technologies in the Big Health industry, and enable the pair to jointly explore markets to achieve win-win results, it added. 

Huawei has been diversifying its business in last couple of years to help different domestic industries to apply its ICT to improve their efficiency after the U.S. sanctions on its chip and network businesses.