Reuters spoke to a Baidu representative and reports the new service will be called Baidu Ting. It is expected to feature streaming, playlist creation and social networking.
Baidu said that it can offer EMI content already through an existing licensing agreement with the Music Copyright Society of China.
It is claimed that Baidu is currently in licensing talks with the other majors.
Baidu has faced a long running copyright battle with the international music industry. It was accused of deep linking to unlicensed MP3 sites but was cleared of contributory infringement in a court ruling last January.