Siemens AG and Alibaba Cloud, the cloud computing arm of the Alibaba Group, have signed a memorandum of understanding to partner for industrial development of the Internet of Things (IoT) in China.

The two companies will leverage each other’s technology and industry resources to build a unique IoT solution to support Industrie 4.0, China’s manufacturing upgrade and transformation and other industrial internet initiatives. Joe Kaeser, president and CEO of Siemens AG, and Simon Hu, senior vice president of Alibaba Group and president of Alibaba Cloud, signed the agreement in Berlin under the witness of German Chancellor Angela Merkel and Chinese Premier Li Keqiang during his official visit to Germany.

“We co ntinue to build our global industrial digital network by partnering with Alibaba Cloud,” Kaeser said. “This cooperation is a landmark deal for bringing Industrie 4.0 solutions to China as the world’s powerhouse of manufacturing. Our customers will be able to unlock the potential of the industrial Internet of Things with MindSphere, now also on the leading Chinese cloud platform. Today, we further strengthen our global leadership in automating and digitalizing the industrial world.”

As part of Siemens’ digital offerings, MindSphere is the company’s cloud-ba sed, open IoT operating system that delivers a wide range of device and enterprise co nnectivity options, robust applications, advanced analytics, and closed-loop innovation with complete digital twin solutions. The implementation of MindSphere on Alibaba Cloud will provide compelling services for companies in China to innovate with advanced industrial solutions.

“Today’s landmark partnership marks an exciting step toward Alibaba Cloud’s goal to enable digital transformation across the globe,” Hu said. “We are delighted to partner with Siemens, and together we hope to accelerate the adoption of IoT products and services that will create industrywide breakthroughs and progress.”