JD.com (JD) and Google-parent Alphabet (GOOGL) forged a wide-ranging alliance on Monday, with the U.S. internet search giant taking a small stake in the Chinese e-commerce firm.

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Alphabet will invest $550 million in cash for a 1% stake in JD. It’s China’s No. 2 e-commerce company behind Alibaba Group Holding (BABA).

As a part of the partnership, JD.com will make a selection of its products available for sale through Google Shopping across multiple regions.

“We think the addition of JD should strengthen Google Shopping,” said Youssef Squali, analyst at SunTrust Robinson Humphrey in a report. “Google has worked over the past 12-18 months to increase the number of partners available on its shopping site and through its smart assistant to include the likes of Target (TGT), Walmart (WMT), Home Depot (HD),  and Costco (COST).”

Next-Gen Retail Infrastructure

Google and JD.com said they will explore joint development of “retail infrastructure” products in Southeast Asia, the U.S. and Europe.

“By applying JD’s supply chain and logistics expertise and Google’s technology strengths, the two companies aim to explore the creation of next generation retail infrastructure solutions, with the goal of offering helpful, personalized and friction-less shopping experiences,” Google and JD.com said in a release.

JD.com gained a fraction to close at 43.76 on the stock market today after rising nearly 6% in earlier trading. JD.com in May reported first-quarter revenue that topped estimates while profit missed. The stock has rallied from a low of 35 in March and formed a cup pattern. Still, JD.com is trading below a technical buy point of 50.78.

E-Commerce Rival Of Alibaba

Alphabet will buy newly issued Class A shares at $20.29 per share, equivalent to $40.58 per ADS, the companies said in a joint statement Monday.

Alibaba and JD.com are the two largest e-commerce companies in China, but with different business models. Alibaba is the largest in terms of gross merchandise volume, while JD.com handles more direct sales.

In China, the company has been testing self-driving delivery vehicles the size of shopping carts and trucks for improved logistics.

Google climbed 2.1% to 1,183.58. The stock passed a buy point of 1,161.20 last week. Shares in Google are up more than 11% in 2018. Alibaba stock has gained nearly 20% this year.

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