SINGAPORE- Monday, June 18, 2018-According to the latest official reports, Google is moving forward to invest $550 million in Chinese e-commerce powerhouse JD.com, which belongs the part of the U.S. internet giant’s efforts, to widen its space in fast-growing Asian markets.
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”
The two of the companies announced their investment decision which would be partnership including the promotion of JD.com products on Google’s shopping service. This investment would also help JD.com to expand its market including China and Southeast Asia to set up its presence in U.S. and European markets. It is also expected that Google is likely to increase 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 U.S. and Chinese internet giants.
A spokesman for JD said Google will generate around 27.1 million newly issued JD.com “Class A” ordinary share as part of the deal. This would provide them around 1 % stake in JD.
Jianwen Liao, JD.com’s chief strategy officer, replied in a statement, “This partnership with Google opens up a broad range of possibilities to offer a superior retail experience to consumers throughout the world”.
For JD.com, the Google deal shows its determination to build a set of global alliances as it seeks to counter Alibaba, which has been more focused on forging domestic retail tie-ups. Japan’s SoftBank Group Com, which is making huge investments around the world, is a major investor in Alibaba.
Company officials also announced that the deal would widen Google’s market strength and reach in analytics with JD.com’s expertise in inventory management and logistics.