Chinese e-commerce giant takes aim at rival leader Alibaba in cloud as China market heats up

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JD.com, a major Chinese e-commerce company, is looking to become the technology platform of choice for U.S. customers in a cloud computing market dominated by Alibaba.

for its claim to one-day or next-day delivery service, which helped drive a year-on-year increase of 18.6% to 362 million annual active customer accounts in 2019. Bernstein analysts also upgraded the stock to "outperform" on March 17, noting how JD's in-house logistics network kept operating throughout the Lunar New Year and the coronavirus' hit to the economy.

The Beijing-based company is now trying to build on that delivery and retail network with a new line of business in technology services, which covers logistics, advertising and cloud computing. "From last year, our new clear direction at JD was to serve the company based on the foundation of supply chain ," Bowen Zhou, chair of JD's technology committee and president of JD Cloud & AI, said in an interview with CNBC on March 20. That's according to a CNBC translation of his Mandarin-language remarks.

"When we look at the direction of our future operations, technology and services is a core engine of growth," Zhou said.Zhou said JD aims to work with Fortune 500 companies that want to grow their operations in China, as well as help U.S. and European technology companies' products enter China.

 

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