Google To Invest $550 Million In Chinese E-Commerce Site JD.com

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Google To Invest $550 Million In Chinese E-Commerce Site JD.com

JD.com and Google have announced that Google will invest $550 million in cash into China's largest retailer as part of a strategic partnership. This includes USA and European markets, with products from the Chinese retailer appearing in relevant Google Search results.

JD.com's USA -listed shares rose 0.4 percent to close at $43.76 on Nasdaq. The Google-JD.com partnership could help JD.com keep an open channel to the USA and would give Google a foothold in China, where it's had trouble conducting business as most of its services are blocked because it won't censor results.

In the past year, Google has partnered with Walmart on multiple fronts.

The announcement comes as United States giant is pushing Google Shopping, a platform allowing customers to compare prices between different sellers, which poses a challenge to Amazon.

Google is stepping up its investments across Asia, where a rapidly growing middle class and a lack of infrastructure in retail, finance and other areas have made it a battleground for US and Chinese internet heavyweights.

JD.com said earlier this year that it planned to make its US debut in the second half of 2018, posing a new challenge for Amazon. This will give them less than a 1 percent stake in JD, a spokesman for JD said. SoftBank has been heavily investing into online ventures around the world and is one of the major backers of Alibaba. JD.com touts its "retail as a service" offering, selling its technology and and infrastructure to other retailers.

JD.com's product range and Google's market share will help both companies achieve their goals.

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