June 13 (Reuters) - AstraZeneca ( AZN ) has signed a

research agreement worth more than $5 billion with Chinese

drugmaker CSPC Pharmaceutical Group ( CHJTF ), the Anglo-Swedish

drugmaker said on Friday.

The deal marks the latest effort by AstraZeneca ( AZN ) to

revive its business in China, where it has faced several

challenges including the arrest of its China president last year

and potential fines related to imports.

Under the agreement, the two companies will collaborate

to discover and develop pre-clinical candidates for potential

treatments targeting chronic diseases, with CSPC conducting

AI-driven research in Shijiazhuang City.

Cambridge, UK-based AstraZeneca ( AZN ) will pay CSPC an upfront

fee of $110 million. The Hong Kong-listed firm is also eligible

to receive up to $1.62 billion in development milestones and

$3.6 billion in sales-related milestones, AstraZeneca ( AZN ) said.

In March, AstraZeneca ( AZN ) announced plans to invest $2.5

billion in a research and development hub in Beijing, as it

works to rebuild trust in its second-largest market.