Google is partnering with China's Xiaomi on the cutting-edge Virtual Reality as announced at this year's Google I/O Developer's Conference staged in San Francisco.

Clay Bavor Google's vice president announced that the two companies will work on its new VR product Daydream.

Daydream, built on the Android N system, will connect users' handsets, VR headsets and mobile applications. It is expected to be released this fall.

Xiaomi, HTC, Samsung and Huawei, among others, will due release their new handsets tailored for the VR headset, which are called Daydream-ready phones.

On the software side, "VR Mode" on Android N will include a VR version of the Google Play Store as well as means for accessing content from partners including Netflix, Hulu and Imax, and Google-made apps including Google Photos, Street View and YouTube.

Also at the I/O conference, Xiaomi released its 4K Mi Box, Xiaomi's first TV compatible device that supports Android's TV system. The TV box will soon be released in the U.S. market and may see global consumers in the near future.

Xiaomi established its lab in 2016. The lab initially focuses on VR and robotics researches.

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