Google announced today that it will invest $550 million in Chinese e-commerce giant JD.com.
The deal gives Google a path into the Chinese e-commerce market and does the same for JD.com in the U.S. and Europe. The two companies will work together to “explore the creation of next generation retail infrastructure solutions,” according to a news release. JD.com will make its products for sale in multiple regions via Google Shopping, which competes with Amazon.com as an online shopping search engine of sorts.
Valued at around $65 billion, JD.com bills itself as China’s largest retailer and competes locally with fellow China tech giant Alibaba. Much like Amazon, it invests heavily in technology, from testing out drone deliveries to opening up a fully-automated fulfillment center that employs just four people. JD.com touts its “retail as a service” offering, selling its technology and and infrastructure to other retailers.
JD.com said earlier this year that it planned to make its U.S. debut in the second half of 2018, posing a new challenge for Amazon. JD.com has also been a strategic partner with Walmart since 2016. Walmart teamed up with Google last year as both battle Amazon.