Google to invest $550m in JD.com

Companies describe investment as part of broader partnership to include promotion of JD.com products

Google will invest $550 million (Dh2.02 billion) in Chinese e-commerce powerhouse JD.com, part of the US internet giant’s efforts to expand its presence in fastgrowing Asian markets and battle rivals including Amazon.com.

The two companies described the investment as one piece of a broader partnership that will include the promotion of JD.com products on Google’s shopping service. This could help JD.com expand beyond its base in China and south-east Asia and establish a meaningful presence in US and European markets.

Battleground for US firms

Company officials said the agreement initially would not involve any major new Google initiatives in China, where the company’s main services are blocked over its refusal to censor search results in line with local laws.

JD.com’s investors include Chinese social media powerhouse Tencent Holdings Ltd, the arch-rival of Chinese e-commerce leader Alibaba Group Holding Ltd, and Walmart Inc.

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 sources have said it may also invest in Indian e-commerce upstart Flipkart.

Google declined to comment on the rumoured Flipkart deal.

The JD.com investment is being made by the operating unit of Google rather than one of parent company Alphabet’s investment vehicles.