Google has committed $550 million to the Chinese e-commerce company JD.com, as a part of the US internet giant’s efforts to expand its presence in the fast-growing Asian markets and battle rivals, including Amazon.com.
The two companies described the investment as a part of a broader partnership that will include the promotion of JD.com products on Google’s shopping service. For JD.com it could be a chance to expand beyond China and Southeast Asia and establish a presence in US and European markets.
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The agreement initially would not involve any major initiatives by Google in China, where the search engine’s main services are blocked over the refusal to censor search results in line with local laws.
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 giants. Google recently took a stake in Indonesian ride-hailing firm Go-Jek, and may invest in Indian e-commerce upstart Flipkart.
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Google will get 27.1 million newly issued JD.com Class A ordinary shares as part of the deal. This will give them less than a 1 per cent stake in JD, a spokesman for JD said.
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