In comparison, Youku, China's largest video sharing site, reported last October that 230 million users visit the site on a monthly basis.

Baidu has also been eyeing China's web browser space. The company is currently that's customized for Chinese users. "Having control of a browser would certainly drive traffic to Baidu search," Li said. "We would like to offer a better user experience with our browser."

Internet Explorer is used by about 83 percent of China's Web users, according to CNZZ.com, an analytical web research site.