Audio Video Coding Standard (AVS),independently developed and owned by China,is a fundamental standard applied in digital TV,IPTV,and other audio/video based systems. The AVS Part Two (AVS1-P2),the video part,defines the highly efficient second-generation video coding technology with the coding efficiency 2-3 times higher than the first-generation standard such as MPEG-2. Moreover,its implementation is simple and easy. AVS1-P2 has made full technical preparation for such applications as IPTV and digital TV broadcast. Meanwhile,AVS features simple licensing and complete support of standards. It will effectively boost the development of China’s IT industry and information applications such as IPTV and digital TV broadcast. Audio Video Coding Standard (AVS), independently developed and owned by China, is a fundamental standard applied in digital TV, IPTV, and other audio / video based systems. The AVS Part Two (AVS1-P2) highly efficient second-generation video coding technology with the coding efficiency 2-3 times higher than the first-generation standard such as MPEG-2. Moreover, its implementation is simple and easy. AVS1-P2 has made full technical preparation for such applications as IPTV and digital TV broadcast. Meanwhile, AVS features simple licensing and complete support of standards. It will be boost the development of China’s IT industry and information applications such as IPTV and digital TV broadcast.