Chinese communications firm Huawei is planning to invest $1 billion on developing new self driving and electric car technologies. According to Huawei chairman, Eric Xu, the company plans to compete head-on with Tesla and Chinese tech firm Xiaomi, which has also announced its entry into the self driving car market.

According to Xu, Huawei’s technology already surpasses Tesla’s, with cars equipped with its technology able to cruise for more than 600 miles without human intervention.

The company plans to partner three car makers initially: Chinese car makers BAIC Group, Chongqing Changan Automobile Co., and Guangzhou Automobile Co.

Cars powered by Huawei technology will carry the company’s name as a sub-brand, Xu told analysts at a briefing in the city of Shenzhen. The sub-branding will be similar to the way Intel sub-brands its processors on PCs.

As a company based in China, Huawei is obligated to share data with the Chinese government under the China Internet Security Law and National Intelligence Law. Western intelligence agencies and governments have highlighted close links between Huawei and Chinese military intelligence. This has led to many western countries refusing to allow Huawei to work on telecoms and mobile infrastructure, which has been the core of its business.

With few signs that the new Biden administration is softening the approach of the last administration towards Huawei, the company is seeking new avenues for growth. These include smart agriculture, healthcare, and self driving and electric vehicle technologies.