According to a well-placed rumour, Xiaomi plans to make electric vehicles (EVs) using Great Wall's factory.
Xiaomi, one of the world's biggest smartphone makers, is in talks to use one of Great Wall's plants in China to make EVs under its brand.
Xiaomi will aim its EVs at the mass market, in line with its electronics products' broader positioning, the two people said.
Great Wall, which has not before offered manufacturing services to other companies, will provide engineering consultancy to speed up the project, said one of the people.
Both companies plan to announce the partnership as soon as early next week, said another person.
The plan comes as Xiaomi seeks to diversify its revenue streams from the smartphone business which accounts for the bulk of its income but carries razor-thin profit margins. It flagged on Wednesday rising costs from a global chip shortage and reported quarterly revenue below market estimates.