Smartphone chip maker Qualcomm announced Wednesday it has signed a new 3G and 4G patent license agreement with Chinese smartphone company Xiaomi.

According to the terms of the deal, Qualcomm has agreed to grant Xiaomi a royalty-bearing patent license to develop, manufacture and sell 3G (WCDMA and CDMA2000) and 4G, including 3-mode (LTE-TDD, TD-SCDMA and GSM), complete devices.

Xiaomi CEO Lei Jun said in a statement the agreement will “play an important role” in furthering the company’s innovation efforts in its line of Mi devices.

The agreement comes as Qualcomm has struggled to secure new license agreements and collect licensing fees in China, and follows the company’s February decision to pay a $975 million settlement and follow a rectification plan in that country in the face of monopoly allegations.

Qualcomm’s technology licensing agreements account for nearly 60 percent of its operating income.

Qualcomm said Wednesday the royalties Xiaomi will pay under the new deal are “consistent with the terms of the rectification plan submitted by Qualcomm to China’s National Reform and Development Commission.”

“Qualcomm is committed to the success of its partners in China as they continue to grow their businesses and we are pleased to reach this new agreement with Xiaomi,” Qualcomm President Derek Aberle said. “We work closely with our partners, such as Xiaomi, to push the boundaries of what’s possible and drive the advancement of the mobile industry.”

As of 8:45 a.m., Qualcomm stocks were up nearly four percent in pre-market trading.