Qi An Xin Group partner with China Electronics Corp

Chinese security company Qi An Xin Group on Friday announced a strategic partnership with the State-owned China Electronics Corp, in a move to further expand market presence. 

Under the partnership China Electronics Corp has spent 3.73 billion yuan ($578 million) buying a 22.59 percent stake in Qi An Xin Group, becoming its second-largest shareholder.

It is thought the move represents Qi An Xin joining the national network security sector.

Qi An Xin Group chairman Qi Xiangdong said the two sides will cooperate in technological innovation, resource integration and the construction of major projects, with rising concern for network security calling for deeper cooperation between governments, enterprises and institutes.

Qi said the company will accelerate its push to build the security response center for enterprises directly under central government, the modern digital city network security response center and the security response center for the Belt and Road Initiative.

"China Electronics Corp has strong advantages in modern digital urban industrial control systems and other related sectors, and Qi An Xin has rich experience in fields including network security solutions, cloud computing and big data. Under the partnership, the two will help better safeguard the network security for the informatization of various industries," Qi said.

With the internet of things industry booming, the network security sector now enters into a period of rapid development, Qi said.

"Buoyed by the strategic partnership, we will gain strong support from the government, which will help us build into a number-one brand globally in the future," Qi added.

Rui Xiaowu, chairman of China Electronics Corp, agreed, saying the move will help the two sides strengthen their core capabilities in cybersecurity.

Qi An Xin Group announced in January this year that it had raised 900 million yuan in its latest series B round of financing, which gave it a valuation of more than 20 billion yuan.

The company claimed it has provided network security products and services to 90 percent of enterprises directly under central government, central government departments, and large banks. 

The company has also offered security services in overseas countries and regions, including Indonesia, Singapore and Canada.