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Amazon has expanded its investment in Chinese Internet company Joyo.com, which the company bought for $75m in 2004.
Amazon's Chinese e-commerce operation Joyo.com 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.