Tencent, ByteDance compete in AI agent push after Manus relocates

Chinese tech firms Tencent, ByteDance, and Alibaba are intensifying their efforts in AI agent development as competition in the sector grows.

This shift follows the relocation of Chinese startup Butterfly Effect, known for its Manus AI agent, overseas due to geopolitical issues.

At the World Artificial Intelligence Conference (WAIC) in Shanghai, Tencent unveiled a series of AI agents aimed at assisting businesses and consumers.

These tools include solutions for online marketing, coding, and automating workflows.

ByteDance has open-sourced its AI agent platform, Coze Studio, claiming it has supported millions of developers in creating AI tools.

Meanwhile, Alibaba introduced an enhanced AI model, Qwen3-235B-A22B, which reportedly excels in task planning and execution.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Chinese companies pivot from model development to practical AI applications

The AI agent race marks a strategic shift in China’s AI industry from building foundational models to creating tools that solve specific business problems.

Unlike earlier phases focused on raw AI capabilities, companies like Tencent are now showcasing agents that can “automate entire workflows, from profiling target consumers and selecting suitable products to creating marketing materials and evaluating campaign performance,” as described in their recent demonstrations.

This pivot reflects broader industry trends, with AI agents expected to handle a significant percentage of daily workplace decisions by 20281.

The focus on practical applications like coding assistants and marketing automation suggests Chinese companies are prioritizing immediate commercial value over theoretical AI advancement.

ByteDance’s open-sourcing of its Coze Studio platform, which “assisted tens of thousands of businesses and millions of developers,” demonstrates how companies are building ecosystems around these practical applications rather than keeping them proprietary.

2️⃣ Manus AI’s departure created unexpected opportunity for domestic competitors

The relocation of Butterfly Effect’s Manus AI to Singapore after U.S. regulatory scrutiny has inadvertently accelerated China’s domestic AI agent market.