Last week, Google (GOOGL  ) announced that it would be investing $550 million in JD.com, (JD  ) the second-largest Chinese e-retailer after Alibaba (BABA  ). Through the deal, Google will get 27 million newly-issued Class A JD.com shares at $20.29 per share.

The partnership will give JD.com entry into American and European markets, as it will be able to offer some of its products through Google Shopping. This in turn will help JD.com compete more effectively with Alibaba for international consumers. The union of Google and JD might also help protect JD from harm as trade tensions continue to intensify between China and the US. JD and Google will create custom, low-friction shopping experiences across several markets, including Southeast Asia, where JD can continue to fight back against Alibaba's regional expansion. Google is the number one search engine in many countries in the region, including Singapore, Indonesia, Malaysia, and the Philippines.

Google, for its part, stands to benefit by reaching markets where competitors like Amazon (AMZN  ) have yet to reach. Amazon has a hold on less than 1% of China's e-commerce market, and its ventures in Southeast Asia are very new and limited, leaving a window of opportunity for Google and JD. Since Alibaba is perhaps too large and powerful in its own right to seek a partnership, Google opted for JD instead. Chinese tech superstar Tencent (HKG: 0700) has also seen the advantages of JD, becoming a top investor in the company. JD could also help Google return to the Chinese market, which it abandoned in 2010 after running afoul of government regulators.

Because of government censorship and stiff competition from domestic companies, China has largely been off-limits to investment from Silicon Valley. But Google isn't the only company trying to regain entry. For example, though China blocked Facebook (FB  ) in 2009, Facebook has continued to try to bolster their presence in the country by forming a partnership with electronics maker Xiaomi, releasing a photo-sharing app, and allowing Chinese companies and even local government entities to advertise to international users. Some companies, like Apple (AAPL  ), have maintained relatively open access to Chinese markets, though at a cost. Other companies, like Amazon, have more or less given up trying to gain a foothold in the Chinese market and have simply sought opportunities elsewhere, such as in India.