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China is expected to be the world's biggest market for connected cars soon (Photo: Deutsche Telekom)

NXP and China's Ministry of Industry and Information Technology (MIIT) will jointly conduct research on secure car connectivity and infrastructure projects to make traffic smarter.

The Dutch semiconductor group said it had signed an agreement with MIIT to help China's auto industry develop the connected technologies that are expected to define tomorrow's transportation infrastructure.

As part of the pact, NXP and MIIT will jointly promote international standards for automotive applications, car-to-X communication and other networking applications.

NXP, one of the world's largest makers of automotive semiconductors, expects China to be the largest connected vehicle market in the world by 2020.

"We look forward to supporting the transformation of the Chinese automobile industry by providing advanced secure connection and infrastructure solutions for a smarter life," NXP Executive Vice President Kurt Sievers said in a statement.