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Google to invest in Chinese e-commerce company JD. COM

The American bases technology giant Google has announced that it would invest around $550 million into, a leading Chinese e-commerce player. 

This investment is considered to be beginning of a strategic partnership deal between Google Inc. and JD. COM. The idea behind the partnership is to develop a better quality of retail infrastructure in different countries across the globe, including Southeast Asia.

In return for the investment done, Google would be receiving more than 27 million freshly issued Class A ordinary shares of the company JD. COM. has been making plans to make an array of products available for its customers in U.S. and Europe via Google Shopping. 

The benefit is that when a retailer partners with Google, to be visible on the Google shopping service, it provides the products of the retailer visible to a larger market. This also provides convenience to the consumers to compare and purchase the products online at competitive prices. For JD. COM, this partnership with Google will help to recover the product searches from its immediate rival company Amazon and stay active in the competitive e-commerce industry. 

This deal will help to sell to reach out to consumers outside its origin country China, especially when there are trade barriers between Beijing and Washington. 

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