Google has agreed to invest $550 million into Chinese online retail giant JD.com as part of a strategic global partnership that will also include offering many of the latter's products via Google Shopping in certain regions.

Why it matters: For Google, teaming up with a major Chinese company can potentially help it enter the Chinese market someday, as well as give it a leg up in certain markets in Asia. For JD.com, the deal allows it to expand its business to regions where it may be less known and compete with Amazon.

Go deeper: A JD.com warehouse with just four people.