Google has announced it will be buying up $550m (£415m) of shares in Chinese e-commerce site JD.com, in an strategic partnership with the goal of expanding its reach in both south east Asia and in retail services.
Google joins the ranks of existing investors like the Chinese social media giant Tencent, which is JD's biggest backer, and Walmart. It's not the first time Google and Tencent have teamed up in backing a company either, having co-invested in the region's tech startups like XtalPi and Go-Jek, and recently signed a partnership on patent sharing.
As part of the deal, Google will receive 27.1m newly-issued Class A shares in JD.com at $20.29 per share, which according to Reuters, equates to less than a one per cent stake.
The news comes as Google prepares to be landed with a fine of up to $11bn by the European Commission, over market dominance of its Android mobile operating system.
Read more: Google to be hit by EU fines of up to $11bn over Android market dominance
The two companies plan to collaborate on a range of strategic initiatives as a result of the partnership, including combining JD's supply chain and logistics background with Google's tech to develop retail solutions in south east Asia, Europe and the US.
Initially the deal will see JD's own products being sold through Google Shopping worldwide, but the pair's ultimate goal lies within delivering consumer shopping experiences that are "personalised and frictionless".
"These consumers in Asia-Pacific are ready to buy, but hard to please," said Google's Karim Temsamani, president of the tech behemoth's Asia-Pacific operations.
"The growth of access to the internet and online retail has led to rising expectations for top-notch experiences at every step of the shoppers journey."
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