Welcome back to China Insights Weekly. Here are the main points:
- Mixue enters New York, Chinese meat brands are heading out into the world
- High-speed rail surpassed the rest of the world combined, the network reached 50,000 km
- Drones incorporated into aviation legislation, Shanghai strives for leadership in eVTOL
- Super-cool air battery Overcoming scale limitations, long-term energy storage heads for industry
Main News
China has launched a powerful artificial intelligence system integrated into its national supercomputer network, capable of autonomously planning and executing complex scientific tasks. Launched on 23 December 2025, the system serves more than 1,000 institutional users and can complete tasks in about an hour that previously took a whole day. It supports nearly 100 scientific workflows in materials science, biotechnology and industrial AI. The system is built on China's National Supercomputing Network (SCNet), which connects more than 30 supercomputing centres across the country. This initiative follows on from Beijing's „AI+“ plan, which aims to accelerate scientific discoveries and industrial innovation. The move underscores China's strategic push to develop AI and contrasts with the US Genesis Mission, which faces tight deadlines for its first demonstrations.
Meta has reached an agreement to acquire Butterfly Effect, a Chinese start-up and developer of the AI agent Manus., for several billion dollars. This transaction ranks among the third largest acquisitions in Meta's history after WhatsApp and Scale. The company was founded in 2022 in Wuhan, China, by founder Xiao Hong, and the deal was concluded in approximately ten days. Xiao will take on the role of vice president at Meta, while the company will continue to operate independently. Prior to the acquisition, the start-up was in talks for a new investment round at a valuation of $2 billion. Manus, which can autonomously use tools to solve complex tasks, reached $100 million in annual recurring revenue (ARR) in mid-December. According to reports, ByteDance previously offered $30 million for the team in 2024.
Fast-growing Chinese consumer brand Mixue opens branches in New York
Chinese beverage brand Mixue opened its first two branches in New York, one in Midtown and the other in Koreatown. In 2024, Mixue became the largest chain in the F&B segment in the world by number of stores, and by June 2025, its network exceeded 53,000 branches, representing a year-on-year increase of 22.7%. The brand is known for its inexpensive ice cream, fruit teas, milk teas, pure teas and freshly brewed coffee. Mixue's offerings allow for customisation of sweetness and combinations of different toppings. The brand's success is attributed to a strictly controlled supply chain and standardised processes. With plans for more branches in New York, Mixue aims to become a popular destination for affordable, freshly prepared drinks.
China's BYD overtakes Tesla as the world's largest electric car seller for the first time
Chinese carmaker BYD has overtaken Tesla as the world's largest seller of electric vehicles for the first time. BYD reported an increase of nearly 281% in sales of battery electric vehicles to 2.26 million units. Tesla, on the other hand, delivered 1.64 million vehicles in 2025, representing an approximately 81% year-on-year decline and the second consecutive annual decline. This milestone highlights BYD's extraordinary rise and contrasts with Tesla's recent struggles, which include growing competition from Chinese electric vehicle manufacturers and the impact of CEO Elon Musk's political statements on the company's reputation. Despite these difficulties, Tesla's share price recently reached an all-time high following reports of successful autonomous vehicle tests.
China's high-speed rail has surpassed the rest of the world combined
China's high-speed rail network has exceeded 50,000 kilometres and is longer than all other high-speed systems in the world combined. The expansion includes the recently opened Xi'an-Yan'an line, which has reduced travel time between the cities from two hours to one. The network now covers 97 cities with more than 500,000 inhabitants and accounts for more than 70% of the total length of high-speed lines worldwide. Key lines include the Beijing–Guangzhou line, which is over 2,000 kilometres long, and the Beijing–Shanghai line, where trains reach speeds of up to 350 km/h. China is also testing new-generation trains, such as the CR450, which reportedly reached a speed of 896 km/h in tests. Beijing plans to expand the network to 70,000 kilometres by 2035 and is also financing railway projects in other Asian countries as part of the Belt and Road Initiative.
Tomáš Kučera & Yereth Jansen
China-insights.com/gnews.cz - GH
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