China Super AI Network 🧠 Meta buys Manus AI 🤖 BYD beats Tesla 🚗

2026-01-05 | subscribe | homepage

Welcome back to China Insights Weekly. Here are some of the key highlights for this week’s edition:

• Mixue lands in New York, China’s mass-market brands go global

• High-speed rail passes the rest of the world combined, network hits 50,000 km

• Drones folded into aviation law, Shanghai pushes for eVTOL leadership

• Super-cold air battery breaks scale limits, long-duration storage goes industrial

Remember to follow us on LinkedIn, X or Facebook.

🚀 Headlines

China rolls out super AI science network to challenge US’s Genesis Mission, Meta acquires Chinese AI startup Manus (link, link)

China has launched a powerful AI system integrated with its national supercomputing network, capable of autonomously planning and executing complex scientific tasks. The system, launched on December 23, 2025, serves over 1,000 institutional users and can complete tasks in about an hour that previously took a full day. It supports nearly 100 scientific workflows across materials science, biotechnology, and industrial AI. The system is built on China's National Supercomputing Network (SCNet), which links over 30 supercomputing centers nationwide. This initiative follows Beijing's "AI+" plan, aimed at accelerating scientific discovery and industrial innovation. The move underscores China's strategic push in AI, contrasting with the US's Genesis Mission, which faces strict deadlines for early demonstrations.

Meta has reached an agreement to acquire Butterfly Effect, a Chinese startup and developer of the AI agent Manus, for a multi-billion-dollar sum. This transaction ranks as the third-largest acquisition in Meta's history, following WhatsApp and Scale. Founded in 2022 by Xiao Hong in Wuhan, the company finalized the deal in approximately ten days. Xiao will assume the role of Vice President at Meta, while the company continues independent operations. Before the acquisition, the startup was negotiating a new funding round at a $2 billion valuation. Manus, capable of autonomous tool use for complex tasks, reached USD 100 million in Annual Recurring Revenue (ARR) in mid-December. Reports indicate that ByteDance had previously offered $30 million for the team in early 2024.

Chinese fast-growing consumer brand Mixue opens two locations in New York City (link)

Chinese beverage brand Mixue has opened its first two locations in New York City, one in Midtown and the other in Koreatown. In 2024, Mixue became the world's largest F&B chain by store count, and by June 2025, its number of stores surpassed 53,000, 22.7% more than a year earlier. The brand is known for its low-cost soft serve ice cream, fruit tea, milk tea, pure tea, and freshly brewed coffee. Mixue's menu features customizable sweetness levels and mix-and-match toppings. The brand's success is attributed to its tightly controlled supply chain and standardized processes. With plans to open more locations in New York, Mixue aims to become a go-to destination for affordable, freshly made drinks in the city.

China’s BYD overtakes Tesla as world’s top EV seller for the first time (link)

Chinese automaker BYD has overtaken Tesla as the world's top electric vehicle (EV) seller for the first time. BYD reported a nearly 28% increase in battery-powered car sales, reaching 2.26 million units. In contrast, Tesla delivered 1.64 million vehicles in 2025, marking an approximately 8% year-on-year decrease, which is Tesla's second consecutive annual decline. This milestone highlights BYD's extraordinary rise and contrasts with Tesla's recent challenges, including increased competition from Chinese EV manufacturers and the impact of CEO Elon Musk's political statements on the company's reputation. Despite these issues, Tesla's stock price has recently reached an all-time high following news of successful driverless vehicle tests.

China’s high-speed rail network surpassed rest of world combined (link)

China's high-speed rail network has surpassed 50,000 kilometers (31,000 miles), outpacing the combined length of all other countries' high-speed systems. The expansion includes the recent Xi'an-Yan'an link, which reduces travel time between the cities from two hours to one. The network now covers 97 percent of cities with over 500,000 urban residents and represents over 70 percent of the world's total high-speed rail mileage. Notable routes include the Beijing-Guangzhou link, spanning over 2,000 kilometers, and the Beijing-Shanghai line, with trains reaching speeds of 350 kph (217 mph). China is also testing next-generation trains, such as the CR450, which reportedly reached 896 kph (557 mph) in a trial. Beijing plans to extend the network to 70,000 kilometers by 2035 and is financing railway projects in other Asian countries under its Belt and Road Initiative.