Online auction site eBay has formed an alliance with one of China's largest retailers in a bid to boost confidence in internet shopping in the country. 

Under the terms of the deal, China Paradise Electronics Retail (CPER) will set up a shop on eBay to sell mobile phones, with further products being added at a later date. 

CPER is one of China's biggest sellers of consumer electronics, and has a strong brand presence.

EBay hopes that the move will convince worried Chinese consumers that online shopping is secure and that the quality of products is as high as in regular shops.

A spokeswoman for eBay China said that this was the first time the company had attracted a business of this size onto its site. 

EBay expanded its auction empire to China after buying EachNet for $180m in a two-stage deal back in 2002 and 2003.

However, it has recently faced fierce competition from the free auction service at Alibaba, which is backed by Yahoo.