One of the largest eCommerce sites in China plans to invest more than 20 billion yuan — or $3.11 billion USD — in the country’s northeastern “rustbelt” region, Business of Fashion reported.
JD.com’s investments would help upgrade industries and create jobs in the provinces of Liaoning, Jilin and Heilongjiang. In addition, the eRetailer plans to build a commerce settlement center in the region, which could lead to 9,000 new jobs.
As regions on China’s east coast have seen fast growth in high-tech manufacturing, the country’s northeastern provinces have lagged behind. To help induce growth in the region, the country’s central government has created investment projects and encouraged costal-based companies to take part in reforms of state companies there.
The news comes on the heels of an investment from JD.com in the Vietnamese eCommerce firm Tiki.vn. While JD.com did not disclose dollar amounts for the deal at the time, the company said it will become one of Tiki’s largest shareholders — along with VNG.
The Tiki.vn deal isn’t JD.com’s only recent investment. In December, the company joined a $863 million funding round for apparel platform Vipshop with Tencent Holdings. JD invested $259 million for a stake of 5.5 percent, adding to a previously held, undisclosed stake of roughly 2.5 percent.
As JD.com invests in other ventures, the eCommerce retailer is also fostering partnerships. Baidu, the Chinese internet search giant, for example, reached a deal with JD.com in which it will send users looking for products online JD.com’s way.
According to a report in Bloomberg, under terms of the deal, users looking for product information on Baidu’s mobile search app will be able to access a section in which they can purchase products right from JD.com. With the deal, Baidu gets to keep users within the app and also access valuable data about what its customers like and don’t like.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More