So far in 2018, the shares of JD.com (NASDAQ:JD) have been mostly in a downtrend. Note that JD stock price has dropped by about 39% this year.

Several factors have caused the decline of JD stock price. First of all, the aggressive tariffs that President Trump has deployed against China have created quite a bit of uncertainty about JD stock. It’s tough to tell how the trade war will affect JD stock and when the conflict will end. But in the meantime, Wall Street has been selling many Chinese names besides JD.com, including Weibo (NASDAQ:WB), Alibaba (NYSE:BABA) and NetEase (NASDAQ:NTES). Chinese stocks have essentially entered bear market territory.

Additionally, JD stock price has declined because its CEO, Liu Qiangdong, was arrested for allegedly raping a woman in Minneapolis, although he has not been charged with a crime. Keep in mind that he is the company’s founder and, with his ownership of 80% of the voting shares of JD stock, has tight control over the company. What’s more, JD does not appear to have a clear-cut succession plan.

JD.com Has Some Positive Attributes

So where is JD stock headed? Even with the negatives, has a contrarian opportunity been created? Or should investors continue to stay away from JD stock?

I do think that JD stock has some notable positive attributes. One is that JD.com has extensive scale in the Chinese e-commerce market, trailing only BABA. JD.com also has more than 500 warehouses and 11.6 million square meters of storage space. Moreover, it utilizes advanced automated systems, artificial intelligence and robots. Consequently, over 90% of its orders are delivered on the same day or the next day. Its infrastructure is used by many other third-parties, providing it with another lucrative source of revenue.

The other main driver of JD stock is economic growth in China, and the company is poised to capitalize on that opportunity. The number of middle class citizens in China is expected to reach a staggering 600 million by 2022. And spending on e-commerce is projected to rise from $470 billion in 2017 to $839.54 billion by 2021. In other words, JD has a great deal of room to grow.

Finally, JD has been aggressively forming strategic partnerships. For example, Tencent (OTCMKTS:TCEHY) is an investor in the company and has touted JD’s e-commerce platform on WeChat, which is the most popular messaging app in China.

Walmart (NYSE:WMT) has also invested in JD. The two companies sell each other’s products in brick-and-mortar stores and on web platforms.

Those partnerships have definitely enhanced JD’s distribution footprint. Consider that 300 million customers currently use JD’s platform, and that 200 million of those have come on board during the past three years.

Bottom Line on JD Stock Price

JD faces serious risks and more negative headlines will probably appear. And the Chinese market could slow down, while JD will continue to face fierce competition from BABA.

But it does look like JD stock price has more than factored in any bad news that’s likely to arise, as investors appear to have thrown in the towel on JD.com.

But JD’s growth outlook is still strong, as, on average, Wall Street analysts expect its annual revenue to increase by 30% this year. Moreover, the forward price-earnings ratio of JD stock is a reasonable 29.

So for investors looking for exposure to the Chinese e-commerce market, JD stock does look interesting. And while JD.com may be volatile, it seems like a good bet that JD stock price will rise over the longer term.

Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.