Priceline and Ctrip have a relationship that dates back to 2012, though it was mostly a marketing partnership until last year’s equity deal. This latest deal would indicate that both sides are satisfied with the partnership’s development, which probably means that Priceline is letting its Chinese partner run its own operation. Such a strategy looks smart, as previous attempts by global names like Yahoo and eBay to impose their ideas on Chinese acquisitions ultimately led to the failure of those endeavors. Japanese e-commerce giant Rakuten previously purchased 20 percent of Ctrip in 2004, but ultimately ended up dumping the stake a few years later after it failed to find any synergies. More recently Ctrip also reportedly considered merging last year with Qunar, its largest local rival that is controlled by leading search engine Baidu. But those talks ultimately collapsed, most likely over issues of who would control the merged company. All of this deal-making shows that Ctrip is becoming keenly aware that it may need some outside help to maintain its market-leading position, and that it’s most concerned about the threat from Qunar. This latest deal looks mildly positive for both Ctrip and Priceline, though I expect the latter may ultimately be disappointed if and when the investment fails to bring much in terms of new revenue. But at least the partnership is off to a positive start, which is often the case when western companies decide to take a try at the difficult Chinese Internet market. Get the full story at Forbes Read also "Priceline sees a future in China, Expedia doesn’t"