(Yicai Global) Oct. 10 -- Chinese smart phone maker Beijing Xiaomi Technology Co. has agreed a deal with Jianye district government in Nanjing, Jiangsu province, to establish its East China headquarters in the city. The office will become the firm's main research and development center and serve as an incubator for local science and technology enterprises, local online media outlet Longhoo reported yesterday.

The deal follows 70 days of negotiations, Lei Jun, chief executive, said. The company first set up a research team in Nanjing six years ago and plans to open four new outlets in the city, he added.

Chinese e-commerce giant Alibaba Group Holding Ltd. [NYSE:BABA] also set up its Jiangsu province headquarters in Nanjing this year.

"The presence of leading science and technology companies in the city will greatly enhance its industrial brand image," said a district government official. "In the future it is expected that an industrial cluster of science and technology firms will be formed."