Sohu Inc's online video unit will provide Microsoft China with an online video streaming service under a partnership agreement.
The two companies will jointly operate the online video business on MSN China's portal website, cn.msn.com, and allow users to share and repost video clippings from Sohu through its instant messaging service.
Viewers can also log onto Sohu's video site using a MSN username and password.
"MSN China will continue to expand its Internet service after joining hands with Sohu as web users have a very strong demand for high quality online video," said Liu Zhenyu, general manager of MSN China.
Sohu will have access to more than 40 million active users of MSN's messenger service in China while MSN China will make its portal website more attractive.
Domestic video sites have been seeking to reach a wider audience amid rising cost of patented movies.