Ebay is set to close its online auction website in China and enter into a partnership with Tom Online, the Financial Times reported. The announcement of the joint venture with Tom Online could be made as early as Tuesday, the newspaper reported, quoting a person familiar with the deal. The move appears to mark a reversal in strategy after last year's remark by eBay's chief executive Meg Whitman that a "share of e-commerce in China is likely to be the defining measure of success on the net". Despite a US$100 million investment in China, the online auctioneer struggled to win market share from Alibaba's TaoBao site. According to state media, eBay may split into three business units in China. The company is expected to contribute US$40 million to the new deal with Tom for a new auction site to be launched next year.