Walmart (WMT  ) is selling its Chinese online business, Yihaodian, to China's second biggest e-commerce site, JD.com (JD  ). Walmart believes the partnership will bolster its presence in China's fast-growing e-commerce market. 

Walmart will receive a 5% stake in JD.com, which is valued at $1.5 billion. More importantly, Walmart now has access to JD.com's delivery network and shoppers. In light of the news, JD.com American depository shares increased to $21.06, up 4.6%. In exchange for JD.com's consumer base and same-day delivery networks, Walmart forfeits its right to start a new Chinese website. 

JD.com produces significant revenue from name-brand electronics, but should benefit from Yihaodian's established business presence in eastern and southern China.Chinese consumers are demanding food products via online shopping at an increasing rate. As such, products like groceries and household goods will now become more featured on JD.com, giving the e-commerce site a much needed entry to that aspect of the market. 

As their economy slows, China's consumers are switching to online and mobile-phone purchases at a much faster rate than US consumers. This change in consumer behavior has JD.com and China's biggest e-commerce site, Alibaba (BABA  ), competing to win over new customers via faster delivery times and expansion into rural areas. 

Walmart wants in on the e-commerce business opportunity, too, but has struggled thus far in efforts to expand in China. Currently, there are only 430 Walmart stores in China, which is not much considering the country's population size. Those 430 stores make up less than 2% of China's online market, with Alibaba holding a 46.9% stake, and JD.com holding 20.1% stake. 

Moody's analyst Charlie O'Shea notes that it's hard for U.S. retailers to successfully enter Chinese markets without some sort of buffer. JD.com, however, now gives Wal-Mart an entree to markets which will immediately increase online sales nationally in China. 

Thankfully for Walmart, JD.com owns roughly 6,000 delivery and pick up stations across China, versus Yihaodian's mere 250 hubs. Access to this infrastructure will definitely lubricate Walmart's expansion efforts. 

Walmart's expansion into the Chinese e-commerce market is timely -- lately, sales growth has been slow for their global online business. Two years ago, e-commerce sales were growing at 20% a quarter, while this quarter they're only growing at 7%. To say the least, Walmart's e-commerce sector needs a boost -- hopefully JD.com will be the helpful force of propulsion.