This week, the forefront of China’s AI sector has once again advanced with two significant milestones capturing attention. On Thursday, Alibaba unveiled its newest AI reasoning system, QwQ-32B, asserting it surpasses both the economical model of OpenAI and the esteemed DeepSeek-R1 from the local startup, DeepSeek. This revelation underscores China’s expanding proficiency in AI technology, occurring just a day after the launch of Manus, a versatile AI agent adept at executing intricate, multi-phase assignments.
China’s artificial intelligence industry continues to push the boundaries of innovation, with two major developments making headlines this week. On Thursday, Alibaba introduced its latest AI reasoning model, QwQ-32B, claiming it outperforms both OpenAI’s cost-efficient model and the highly regarded DeepSeek-R1 from the Chinese startup DeepSeek. This announcement, which highlights China’s growing expertise in AI technology, comes just one day after the debut of Manus, a general AI agent capable of completing complex, multi-step tasks.
Alibaba’s QwQ-32B competes with top AI innovators worldwide
Alibaba’s QwQ-32B challenges global AI leaders
The announcement positions Alibaba at the leading edge of China’s AI competition, especially as it aims to contest the supremacy of OpenAI, the U.S. company renowned for its pioneering language models. QwQ-32B builds upon Alibaba’s earlier AI breakthroughs, such as its ChatGPT-equivalent Tongyi Qianwen, introduced in 2023, and Qwen 2.5 Max, launched earlier this year. The company contends that these developments signify a “qualitative leap” in AI reasoning, establishing it as a strong contender in the international arena.
The announcement places Alibaba at the forefront of China’s AI race, particularly as it seeks to challenge the dominance of OpenAI, the American firm widely known for its groundbreaking language models. QwQ-32B builds on Alibaba’s previous AI innovations, including its ChatGPT-equivalent Tongyi Qianwen, launched in 2023, and Qwen 2.5 Max, released earlier this year. The company asserts that these advancements represent a “qualitative leap” in AI reasoning, positioning it as a formidable player in the global market.
Alibaba’s aggressive push into AI is further reinforced by its commitment to long-term investment. Last week, the company announced plans to allocate 380 billion yuan (approximately $52.4 billion) over the next three years to its AI and cloud computing infrastructure. This investment surpasses the total amount spent by Alibaba in these areas over the past decade, signaling its determination to lead in both innovation and scalability.
Enhancing the competitive environment, the Chinese firm Monica introduced Manus, a general AI agent tailored to manage complex, multi-step tasks. Unlike conventional chatbots, which mainly produce responses or suggestions, Manus can achieve concrete outcomes. A promotional video for the agent demonstrates its ability to carry out advanced activities like evaluating job applications, developing websites, and generating comprehensive reports based on user-specified criteria.
Adding to the competitive landscape, Chinese company Monica unveiled Manus, a general AI agent designed to handle intricate, multi-step tasks. Unlike traditional chatbots that primarily generate responses or ideas, Manus is capable of delivering tangible results. A promotional video for the agent shows it performing sophisticated tasks such as screening job applications, creating websites, and producing detailed reports based on user-defined criteria.
DeepSeek’s impact on the acceleration of China’s AI sector
DeepSeek’s influence on China’s AI momentum
The release of QwQ-32B and Manus follows the success of DeepSeek’s R1 model earlier this year, which set a new benchmark for reasoning models in terms of performance and cost-efficiency. DeepSeek captured global attention in January when it revealed that R1, despite having 671 billion parameters, required significantly less investment to train compared to its Western counterparts. This achievement bolstered confidence in the potential of Chinese AI firms to compete on the global stage, even as geopolitical tensions and trade restrictions pose challenges.
DeepSeek’s R1 model has been hailed as a breakthrough in reasoning technology, enabling rapid and precise solutions to complex problems. Its success has also contributed to a broader shift in investor sentiment, with the Hang Seng China Enterprises Index rising by over 30% since January. Analysts view this trend as a reflection of growing optimism about China’s ability to innovate and lead in emerging technologies.
The latest progress by Alibaba and Monica fits within China’s wider strategy to lead critical tech fields, such as artificial intelligence. On Wednesday, Chinese officials reiterated their dedication to bolstering “emerging industries and future sectors” via enhanced financial support and policy incentives. Beyond AI, the government has emphasized funding for humanoid robotics and quantum technology, indicating a holistic method to encourage innovation.
The recent advancements by Alibaba and Monica align with China’s broader strategy to dominate key technological sectors, including artificial intelligence. On Wednesday, Chinese leaders reaffirmed their commitment to supporting “emerging industries and industries of the future” through increased funding and policy incentives. In addition to AI, the government has prioritized investments in humanoid robotics and quantum technology, signaling a comprehensive approach to fostering innovation.
China’s focus on AI development is not only a response to domestic needs but also a strategic move in the context of its ongoing rivalry with the United States. As both nations compete for technological supremacy, China’s advancements in AI are seen as critical to strengthening its position in the global economy. By encouraging collaboration between private companies and state-backed research institutions, the Chinese government aims to create a robust ecosystem that can sustain long-term growth and innovation.
The road ahead for China’s AI sector
Yet, obstacles persist. The escalating competition between Chinese and Western tech giants has resulted in heightened scrutiny and regulatory pressures, especially in the United States and Europe. Concerns about data security, intellectual property, and ethical standards continue to influence the global dialogue on AI, with Chinese companies frequently at the heart of these discussions.
However, challenges remain. The intensifying rivalry between Chinese and Western tech giants has led to increased scrutiny and regulatory pressures, particularly in the United States and Europe. Questions about data security, intellectual property, and ethical standards continue to shape the global conversation around AI, with Chinese firms often finding themselves at the center of these debates.
Despite these obstacles, China’s AI sector shows no signs of slowing down. With strong government support, robust corporate investment, and a growing pool of talent, the country is well-positioned to drive the next wave of AI innovation. As the race for technological leadership heats up, the launches of QwQ-32B and Manus serve as a reminder of the transformative potential of artificial intelligence—and the central role China is playing in shaping its future.
