A representative from China Hualu Group has revealed that the video website Hualu5.com developed by its subsidiary Hualu Culture Industry Company is expected to be launched in a month.

As one of the biggest Chinese state-owned enterprises that focuses on the audio and video industry, Hualu Group's new video website will adopt a business model which combines videos with e-commerce, including broadcasting of popular TV series, interactive advertising, and sales of Blu-Ray discs. The company goes head-to-head now with a multitude of privately-funded Chinese online video ventures such as Tudou.com and Youku.com.

Hualu has reportedly inked agreements with Internet shopping websites such as Amazon.cn and Dangdang.com to allow consumers to buy TV and movie products produced by Hualu on these websites. The company has also formed partnerships with Chinese social networking sites such as the micro-blog zone of Sina.com and Kaixin001.com to allow users of these websites to interact with performers appearing in programs made by Hualu.

With the entry of Hualu, which owns a large number of copyrights and media industry resources, the competition in the Chinese Internet video market will become more fierce as privately-owned companies try to fight a losing battle against companies backed with Chinese government resources.