The United States-based Internet giant is investing $550 million in cash in JD.com. The deal will help Google expand its presence into Asian markets, while giving JD more power to compete in the fast-growing Asian e-commerce marketplace.

Through the deal, Google and JD will collaborate on a range of strategic initiatives, including joint development of retail solutions in a range of regions around the world, including Southeast Asia, the U.S. and Europe. By merging JD’s supply chain and logistics expertise and Google’s technology strengths, the two companies plan to create next generation retail infrastructure solutions, including furniture e-commerce. These new services will offer helpful, personalized and frictionless shopping experiences, according to JD.com.

The e-commerce retailer also plans to make a selection of high-quality products available for sale through Google Shopping, a service that lets users search for products on e-commerce websites and compare prices between different sellers. The service will be available in multiple regions, the company said.

May 31, JD.COM has officially announced to launch the business of building materials, and all kinds of merchants and individual consumers will be able to buy various building materials such as sands and cements, pipe fittings and coatings on Jingdong Platform in the future. After this cooperation with Google, more Chinese furniture e-commerce will run out of China, vice versa.

“This partnership with Google opens up a broad range of possibilities to offer a superior retail experience to consumers throughout the world,” said JD.com’s chief strategy officer Jianwen Liao. “This marks an important step in the process of modernizing global retail.”

This is JD.com’s newest U.S.-based partner. Walmart teamed up with JD.com in June 2016, investing in a 5% stake in the company. That investment has since increased to more than 12%.

Since teaming up with JD.com, Walmart has launched five online stores on JD platforms, enabling Chinese consumers to shop the Walmart, Sam’s Club and ASDA brands. In addition, 134 Walmart stores across 18 cities have also joined the JD Daojia grocery platform, offering shoppers one hour deliveries.

While the new Google partnership gives the company more leverage to compete against Chinese e-commerce giant, Alibaba, it also gives JD an avenue to sell to consumers outside China. This would open up more opportunities for the e-commerce retailer, especially since the Trump administration plans to impose a 25% tariff on up to $50 billion of imported Chinese goods.

In terms of Smart Home area, Amazon has become the biggest direct competitor to Google, Amazon Alexa VS Google AI.

By investing in JD.COM, Google took part in e-commerce area, this will help google to well know its competitors and enrich its product chain.

（Source: JJGLE.COM）