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Beijing Supports AI Startup Manus in Bid for Global AI Dominance

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Chinese AI startup Manus has made significant strides, with its China-facing AI assistant now officially registered and receiving notable state media attention, as Beijing continues to promote domestic AI companies. The startup, which recently garnered global attention for releasing what it claims is the world’s first general AI agent capable of making decisions and executing tasks autonomously, is being positioned as a key player in China’s ambition to rival global AI leaders.

Manus’ breakthrough moment came when the company went viral on social media platform X, following the introduction of its AI agent, which offers a more advanced and independent functionality compared to current AI chatbots like ChatGPT and the AI model DeepSeek. Beijing’s state-run CCTV aired a segment showcasing Manus, highlighting the AI agent’s unique capabilities, and comparing it to DeepSeek’s AI chatbot, which also gained recognition for offering competitive performance at a fraction of the cost of its U.S. counterparts.

The Chinese government has supported Manus’ development, with Beijing’s municipal government approving the registration of Manus’ earlier AI assistant, Monica, which is a necessary step for launching generative AI apps in China. This regulatory approval aligns with Beijing’s strategy of bolstering the domestic AI sector while maintaining tight control over content deemed sensitive by the authorities.

In addition to government backing, Manus secured a strategic partnership with the team behind Alibaba’s Qwen AI models, further strengthening its position in the competitive AI landscape. Manus’ AI agent is currently available through an invite-only system, with a waitlist reportedly exceeding 2 million users.

PDD Holdings Faces Revenue Miss Amid China Competition and Global Uncertainty

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PDD Holdings, the parent company of Pinduoduo and Temu, reported lower-than-expected quarterly revenue on Thursday, reflecting weak consumer demand in China despite deep discounts and government efforts to boost spending. The company generated 110.61 billion yuan ($15.3 billion) in revenue for the quarter ending December 31, missing analysts’ estimates of 115.38 billion yuan. However, it exceeded profit expectations with an adjusted earnings per share of 20.15 yuan, aided by higher investment income and favorable currency exchange rates.

Despite aggressive pricing, PDD faces intense domestic competition from Alibaba and JD.com, both of which recently posted better-than-expected earnings. Analysts suggest that Alibaba’s focus on merchant retention and JD.com’s strength in electronics—bolstered by government subsidies—have given them an edge over PDD.

Internationally, PDD’s Temu platform continues to gain traction, attracting budget-conscious shoppers in markets like the U.S. and Europe. However, it faces uncertainty due to potential changes in the U.S. de minimis policy, which currently exempts imported items under $800 from tariffs. A policy shift could impact Temu’s low-cost advantage.

Co-CEO Chen Lei acknowledged the growing challenges posed by competition and regulatory shifts, stating that PDD is exploring new business models and localized supply chain innovations to adapt. Despite these concerns, U.S.-listed shares of PDD rose 2% in early trading.

OpenAI Unveils New Developer Tools Amid Growing Competition from Chinese AI Startups

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OpenAI launched a suite of new tools for developers on Tuesday, designed to help build advanced AI agents using a few key application programming interfaces (APIs). These tools come at a time of increasing competition from emerging Chinese AI startups, which are gaining ground with innovative solutions and low-cost alternatives to industry leaders in the United States.

The new Responses API is a core feature of the update, available to all developers at no additional cost. It replaces the previous Assistants API, which OpenAI plans to phase out by mid-2026. The Responses API offers enhanced capabilities for creating AI agents, which are designed to perform complex, real-world tasks independently of direct human intervention.

This release comes as Chinese AI startups like Monica have gained significant attention. Monica’s autonomous AI agent, Manus, which was launched recently, has been touted as being on par with or even superior to OpenAI’s DeepResearch agent in terms of performance. The company’s Manus AI has attracted praise for its ability to carry out tasks with minimal human involvement, which has generated significant buzz in the AI space.

Additionally, Monica has announced a strategic partnership with the team behind Alibaba’s Qwen AI models, marking another significant move in the growing competition between Chinese startups and established players like OpenAI. This partnership could further accelerate the development and capabilities of AI agents, pushing the industry forward.

As AI technology evolves rapidly, OpenAI’s release of the Responses API underscores its ongoing effort to stay ahead in the competitive landscape, offering developers more powerful tools to create innovative AI solutions. However, as Chinese startups continue to make strides, the battle for dominance in the AI space is heating up.