Chinese ride-sharing and ride-hailing app Didi Chuxing announced an infusion of $600 million from China Life Insurance Co Ltd, which also holds a stake in Didi Chuxing's rival and American multinational Uber.

The investment comes in the form of $300 million worth of equity and a long-term debt investment of $305 million. The funds are likely to be used to compete with Uber's presence in China. Both companies are currently looking to increase their market share in the region and are currently embroiled in a price war.

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In a joint statement, the companies said, "The two parties will also collaborate on investment opportunities in mobile transportation and related sectors in China and beyond." The companies are also expected to work towards developing new models for financial and insurance products.

Didi Chuxing, which recently raised $1 billion in investment from Apple Inc., has attracted investments from many other high profile investors including Alibaba Group Holding Ltd., China Merchants Bank, Tencent Holdings Ltd. and China Investment Corporation.

Didi has raised more than $3 billion in its latest funding round, which takes its valuation to nearly $25 billion. The value of the company is three times larger than its close competitor Uber China, which has been valued at $8 billion. However, the Uber China's parent company is worth $68 billion.

With its new investment, China Life Insurance is now a common stakeholder in both Uber and Didi Chuxing. Such overlapping stakes could lead to a conflict of interest and it is not yet known whether Uber or Didi have any special arrangements for such investors.

Earlier this year, there was speculation that Didi was planning to issue an IPO in the United States in 2018.

TagsDidi Chuxing, Uber, China Life Insurance, Alibaba, china