China's online video portal LeTV Group has set up subsidiaries in Los Angeles and Silicon Valley with the aim of expanding its business in North America, Beijing Business Today reported on Friday.

The subsidiary in Silicon Valley will focus on Internet and the intelligent terminal business, while the one in Los Angeles will focus more on online video production.

The two are recruiting talent and paving the way for a future LeTV European subsidiary.

Many experts think the company’s new location aims to improve its software applications and copyrights instead of selling smart televisions. According to industry expert Liang Zhenpeng, LeTV will take advantage of overseas resources and talent to improve R&D and its smart TVs.