Chinese web video powerhouse Youku will partner with MySpace China, bolstering Youku’s position in the burgeoning online video-sharing industry in the Asian country.

Under the deal, MySpace China will “draw on” Youku’s video-streaming technology.

It’s not clear if the social-networking site will post videos hosted on Youku. The companies characterized the move as an “exclusive partnership,” but did not elaborate on its significance.

The agreement will drive more traffic to both sites, said Youku CEO Victor Koo.

More viewers should eventually translate into more advertising dollars, but Chinese sites have so far struggled to generate money from advertising.

“My guess is that you will see a steady ratcheting up of the monetization of the web [in China] over the next few years,” said Steve Weinstein, a Pacific Crest Securities analyst, in a recent interview. “But once it happens, it can happen rapidly.”

Beijing-based Youku announced in January that is was generating 100 million daily video views—as many as YouTube was when it was bought by Google in 2006.

But the startup’s main rivals, Beijing-based 56 and Shanghai-based Tudou, have also risen quickly and command large followings.

In-Stat analyst Simon Sun has predicted that at least one Chinese video site will be acquired this year, probably from the country’s largest search engine, Baidu.