Qualcomm and GuangDong OPPO Mobile Telecommunications have entered into a new 3G and 4G patent license agreement for China, according to the companies.

Under the terms of the agreement, Qualcomm has granted Oppo 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. The royalties payable by Oppo are consistent with the terms of the rectification plan submitted by Qualcomm to China's National Development and Reform Commission (NDRC).

"This license agreement will allow us to have access to the most advanced technologies in the mobile industry and enable us to craft elegant devices with extraordinary experience for the consumers," said Adler Feng, director of IP for Oppo.

"As an R&D engine for the industry, we are excited to see companies such as OPPO build on our patented technologies to drive further development and innovation and create compelling products," said Alex Rogers, senior VP and GM of technology licensing for Qualcomm. "Oppo joins more than 100 other Chinese companies that have signed license agreements with Qualcomm."

Oppo is reportedly among MediaTek's major clients. Rumors are already circulating in China that Oppo chose Qualcomm over MediaTek to make chips for its new flagship smartphones, which would affect negatively MediaTek's sales performance.

Oppo became the second-largest smartphone vendor in China in the second quarter of 2016, according to recent Strategy Analytics report. Oppo shipped 15.2 million smartphones and captured a 14% market share in China during the quarter, with the shipments jumping an impressive 108% from the same period in 2015.