A standard for storing video on CD-ROM, Chaoji VideoCD was created in order to bring the three competing formats of the time under one standard. Originally there were three formats competing to be the format for next-generation CD-based movie media in China - China Video Disc (CVD) from C-Cube Microsystems, Super VideoCD (SVCD) from the Chinese government with assistance from ESS Technology and High-Quality VideoCD (HQ-VCD) from the VideoCD Consortium (Philips, Sony, Matsushita and JVC - the companies that created the original VCD or White Book specification).

C-Cube Microsystems had already gotten a head start when the next-generation format was being developed. However, the China Recording Standards Committee had actually agreed to back the VideoCD Consortium-developed HQ-VCD format. This created panic amongst the SVCD and HQ-VCD developers because CVD's head start in the market would get in the way of the adoption of the new format. So, a new compatibility specification called Chaoji VideoCD ("chaoji" roughly translates to "super") was created, which required compatibility with all three formats. A Chaoji VideoCD-compatible player must be able to play SVCD, CVD, VCD 2.0, VCD 1.1 and CD-DA (Red Book Audio) discs. DVD compatibility is sketchy at best, because not all standalone DVD players will play them. About 40% of Region 1 DVD players will play them, most of them using C-Cube's microchips.

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