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Shopify, JD.com pair up in China as e-commerce competition intensifies -Breaking

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© Reuters. FILEPHOTO: Shopify logo seen outside of its Ottawa headquarters on September 28, 2018, Canada. REUTERS/Chris Wattie/File Photograph GLOBAL BOTH WOW AHEAD

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(Reuters) – Shopify, a Canadian e-commerce company that is headquartered in Canada, announced Tuesday that it had partnered with JD China (NASDAQ:).com in order to allow merchants from the United States to sell to JD customers in China.

The partnership is in stark competition with other players in China’s ecommerce sector. Pinduoduo (NASDAQ:), Alibaba (NYSE: ) Group Holdings and Douyin It was not revealed what the financial terms were.

According to the companies, this deal will allow Shopify merchants to sell on JD Worldwide’s cross-border platform JD Worldwide. It also opens up access for its 550,000,000 active Chinese customers.

Shopify stated that US merchants can now sell their products in China in three to four weeks, instead of the usual 12 month wait required for foreign brands.

The companies said that this is an extension of the larger strategic partnership Shopify has with JD.com. It aims to solve cross-border commerce problems for U.S. merchants and Chinese traders.

China has been clamping down for over a year on its tech sector. This includes e-commerce firms. It is taking aim at overseas growth ambitions as well as domestic concentration of power. JD.com feels the same pressure.

State-owned media reported that JD.com was summoned along with four other companies by China over illegal livestreaming at the Singles’ Day shopping festival.

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