SHANGHAI -- Volvo Cars has signed an agreement with telecom giant China Unicom to promote Vehicle to Everything (V2X) technology in China based on 5G technology.

Developing 5G-based V2X technology will bring smart cars closer to people, and provide more possibilities for the future, said Yuan Xiaolin, senior vice president of Volvo Car Group.

V2X refers to the information exchanges between vehicles and the outside environment. With 5G technology, cellular V2X technology can not only realize autonomous driving but also provide real-time road conditions to prevent traffic jams and accidents.

Yuan said China is one of the most important markets for Volvo Cars, and that the Asia-Pacific area, with China at the core, has become a powerful engine for the company's growth.

Last year, Volvo Cars saw its car sales exceed 150,000 in China for the first time, according to Yuan.

With the rise of 5G technology in China, Yuan said he is confident about the cooperation with China Unicom.