LOS ANGELES (Reuters) -- EBay plans to announce soon that it will shut down its main Web site in China and replace it with one run by a joint venture with Beijing-based Tom Online Inc., a person familiar with the matter said Monday.

A spokesman for eBay (Charts) said the company would not comment on speculation, after The Wall Street Journal reported the decision, citing people familiar with the matter.

EBay could announce as early as Tuesday that it was taking a 49 percent stake in the new site, one person familiar with the matter told Reuters. Tom Online, an online portal and wireless operator, would hold 51 percent.

There has long been media speculation that eBay would forge an alliance with Tom Online to compete more effectively with Chinese auction leader Alibaba.com, a joint venture with Yahoo Inc (Charts) and other local players.

EBay's decision was a strategic one aimed at strengthening its position in the region and not an exit, as some have described it, a person familiar with the matter told Reuters.

There were no plans to eliminate any jobs in China, that person said.

Analysts say eBay is reluctant to retreat from China as it did from Japan in 2002. EBay shut down its nascent business there after failing to make headway against market leader Yahoo Japan Corp.

EBay has built up its business in Asia through acquisitions of local partners, including EachNet in China, Internet Auction in South Korea and Bazee in India. In Taiwan, its venture with PChome Online has made it No. 1 there.

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