China is rapidly advancing in both artificial intelligence (AI) and biotechnology, narrowing the gap with the United States in these critical sectors. Over 626 Chinese universities now offer AI-related degrees, reflecting a nationwide push to cultivate talent and meet industry demand. The country's AI sector is experiencing a boom in autonomous AI agents, with startups such as Butterfly Effect's Manus, Genspark, and Flowith leading the way. Manus raised $75 million and Genspark reports 5 million users and $36 million in annual revenue. These agents, built on models like Anthropic's Claude Sonnet and Alibaba's Qwen, are designed to automate complex tasks and are increasingly targeting overseas markets. Major Chinese tech firms, including Alibaba, ByteDance, Tencent, and Zhipu AI, are launching their own agents and embedding automation into platforms such as WeChat and Quark, which has 149 million monthly active users. Other notable apps include DeepSeek, Doubao, and Kimi. China's AI progress is supported by $188 billion in sector investment between 2019 and 2024, much from government sources. The country benefits from a large pool of STEM graduates and a permissive data environment, enabling rapid product cycles and integration across digital services. Alibaba recently unveiled its Qwen3 Embedding series, which tops global benchmarks for text-embedding services. In biotechnology, China is also gaining ground on the U.S., particularly in pharmaceutical production, clinical trials, and patent activity. The Harvard Belfer Center notes that China has the most immediate opportunity to overtake the U.S. in biotechnology among five critical tech sectors. China leads in the number of clinical trials conducted, and recent investments include AstraZeneca's $2.5 billion research and development center in Beijing. The Chinese military is investing in AI, with the newly established People’s Liberation Army Information Support Force Engineering University in Wuhan offering 10 undergraduate majors in information and intelligent technology, including AI and unmanned operations. This aligns with national strategies to prepare for information-focused warfare. Despite these advancements, many Chinese AI agents are still catching up to Western models in performance and usability, and the domestic market is fragmented by regulatory and platform barriers. However, the rapid pace of development and global ambitions of Chinese startups and tech giants are reshaping the global landscape in both AI and biotech sectors.
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