One of China’s most popular video sharing sites, 56.com is literally back in the picture.

Despite good vibes drawing venture funds to the online video industry that entices more than half of the country’s 220 million internet population, 56.com had suffered a breakdown in transmission for more than a month and this will lead to further lagging behind cash-rich counterparts Youku and Tudou. There is still no mention of a SARFT licence and only a rumor of possible changes in business model.

Last year, 56.com had raised $30 million in 2 rounds of financing from the mostly foreign investors that include Susquehanna International Group China, Adobe Systems Inc, the CID Group, Disney Steamboat Ventures, and Sequoia Capital, among others.

Both 56.com and Youku had received the ‘Rising Star’ award in the video sharing category at the recent CHINICT 2008 telecom and IT industry conference held in Beijing, an event that recognizes innovative ICT start-ups as leaders in their respective sectors. Youku had recently confirmed its broadcasting licence.