Video websites are now targeting the mobile video market to shore up revenue and complement their traditional PC video services even as 3G networks have started to make further inroads in the country.

Gary Wang, CEO of Tudou.com, China's leading video website, told China Daily that the company's mobile video business may account for about half of its overall revenue in the next two years.

"Video watching is one of the most important 3G applications and the market for the same may touch 1 billion yuan by 2010," said Wang.