June 19, 2018
The power of Chinese e-commerce continued to assert itself this week when Google acknowledged it will invest more than half a billion dollars in JD.com. The online marketplace, owned by Tencent Holdings, is a competitor to e-commerce giant Alibaba. The companies characterized the announcement as a partnership that would enable JD.com to grow beyond its powerful base in Asia, perhaps establishing a presence in Europe and the U.S., while Google will take advantage of JD.com products to expand its Google Shopping service.
Google is following in the footsteps of Walmart, which sold its Chinese e-commerce venture to JD.com in exchange for five percent of the company. Google’s $550 million investment nets them less than one percent of JD.com’s shares, according to a company spokesperson.