JD.com said it will invest 10 billion yuan (US$1.6 billion) in Hunan Province's Xiangtan City.
It has also signed a strategic cooperation deal to beef up its initiatives in the city in terms of logistics, cloud computing, driverless vehicles and robotic couriers.
The setting up of a demonstration base for "Internet Plus" initiatives such as cloud computing, artificial intelligence, and financial services has also been planned, as well as supportive measures for Xiangtan to develop its own digital economy.
The Xiangtan government will also combine the two sides' resources to build a logistics network to allow local agricultural product vendors to sell their merchandise to shoppers all around the country.
The two parties will also jointly set up a smart manufacturing innovation center, while the e-commerce company will help with the deployment of Xiangtan's modern agricultural strategy.
JD's chairman and chief executive officer Liu Qiangdong said in a statement that the rich talent resource and strong entrepreneurship in Hunan Province are providing huge growth opportunities for new economic formats and technologies.
