A Japanese information technology and electronics company and the country's largest telecom operator announced plans to partner on research and development of secure 5G networks, challenging Chinese technology company Huawei, which has been designated a national security threat by the United States.

NTT, a Japanese telecommunication group, will acquire a 4.8 percent stake in NEC, a Japan-based telecom equipment maker, for 64.5 billion yen ($597 million), to spur the development of a "made-in-Japan" 5G network, according to Nikkei Asian Review.

The Japanese government will provide financial support worth about 70 billion yen ($653 million) for domestic firms including NEC and Fujitsu to develop 5G equipment and networks. The government aid should allow Japan to gain a competitive advantage over Chinese telecommunications companies like Huawei in the global 5G race.