U.S. tech giant Google said yesterday it will invest US$550 million in Chinese e-commerce powerhouse JD.com, part of the U.S. Internet giant’s efforts to expand its presence in fast-growing Asian markets and battle rivals including Amazon.com.

The two firms described the deal 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, China’s second-largest e-commerce player, expand beyond its base in China and Southeast Asia and establish a meaningful presence in U.S. and European markets.

Company officials said the agreement initially would not involve any major new Google initiatives in China.

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 U.S. and Chinese Internet giants. Google recently took a stake in Indonesian ride-hailing firm Go-Jek, and sources said that it may also invest in Indian e-commerce upstart Flipkart.

As part of a strategic partnership, Google will put US$550 million in cash into JD.com, the companies said in a statement. In return, Google will receive more than 27 million newly issued JD.com Class A ordinary shares at an issue price of US$20.29 per share.

That’s equivalent to US$40.58 per American depository share based on the volume-weighted average trading price over the prior 10 trading days. JD.com listed American depository shares in its group company on the NASDAQ in 2014.

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

Company officials said the deal would marry Google’s market reach and strength in analytics with JD.com’s expertise in logistics and inventory management.

The partnership would open a channel for JD.com to sell to consumers outside China, especially at a time when trade tensions between China and the United States are high.

JD.com founder and CEO Richard Liu said recently that a trade war would be “horrible” and it would end up hurting a lot of American brands. He also said current uncertainty gave the company pause over its U.S. expansion plans. (SD-Agencies)