Amazon has expanded its investment in Chinese Internet company, which the company bought for $75m in 2004.

Chief Executive Jeff Bezos told the Wall Street Journal that Amazon would invest more capital into China, where it trails behind its biggest local competitor,

Amazon’s Chinese e-commerce operation has a 12% share of the market in the first quarter of 2007, compared with Dangdang’s 18%.

Jeff Bezos said Amazon plans to introduce some of the features of its worldwide sites to the Chinese market to boost its performance – offering free shipping on all orders and providing customer-specific purchase recommendations.

According to Chinese research firm Analysys International, China’s e-commerce market may  triple to 18.83bn yuan ($1.25bn) in 2010, from 5 billion yuan (£328m) last year.

Further reading:

Jeff Bezos talks about Amazon Web Services

Amazon posts 32% rise in Q1 sales