Abstract:AV (Audio and Video) industry is one of the three main parts of the national information industry. AVS (Audio & Video coding Standard) standard leaded by China is the basic standard of AV industry. This paper introduces the background, the process, the character and the potential applications of AVS. AVS found a new mechanism to support integration innovation by a "long circulation" that not only connects research and industry by a deal between a institute and a company but connect all possible research organizations and all possible industry players by the standard and patent pool. As a result, AVS will be a source for Chinese AV industry and a good choice for AV industry world wide.