China and Japan AI Apps: Doubao, Kimi, DeepSeek, LINE — 2026-10-27
ByteDance’s Doubao maintains a dominant lead in China’s AI app market with over 400 million monthly users, while Alibaba’s Qwen surges in growth. In Japan, generative AI usage crossed the 50% threshold for the first time, and Chinese regulators clarified that major AI firms like DeepSeek and MiniMax are exempt from new export controls.
China and Japan AI Apps: Doubao, Kimi, DeepSeek, LINE — 2026-10-27
Top developments
Doubao Extends Lead as Qwen Surges; DeepSeek Stalls
QuestMobile’s latest data for September 2026 shows ByteDance’s Doubao leading China’s AI-native apps with 419 million monthly active users (MAU). Alibaba’s Qwen (Tongyi Qianwen) recorded the highest year-on-year growth rate at 5,076.6%, reaching 167 million users, while DeepSeek’s user base saw a year-on-year decline. This shift highlights Alibaba’s aggressive promotional spending to capture market share from rivals.
Japan’s Generative AI Usage Crosses 50% Mark
For the first time in Japan, more than half of the population aged 20–69 reported using generative AI services. The Japan Research Center’s survey released this week found that 56.3% of respondents had used generative AI, marking a significant milestone since tracking began in 2023.
DeepSeek and MiniMax Cleared for Overseas Commercialization
Despite recent concerns over China’s updated technology export control list, a state-media-affiliated account clarified that AI companies like DeepSeek and MiniMax can continue their commercialization efforts overseas as usual. This clarification aims to stabilize market sentiment after reports suggested a potential ban on AI tech exports.
ByteDance’s Economic Rise and AI Investment
ByteDance’s revenue for the first half of 2026 reached approximately $120 billion, a 30% year-on-year increase, bringing its scale close to the combined totals of Tencent and Alibaba. The growth is driven by Douyin advertising, e-commerce, TikTok, and significant investments in AI infrastructure and models like Doubao.
Local view
Stability Over Features in China
Chinese tech commentators emphasize that service stability is becoming a decisive factor for user retention. A recent incident where DeepSeek’s web and API services experienced outages led many users to temporarily switch to Doubao and Qwen, which maintained stable uptime. This event underscored the importance of robust infrastructure in the competitive AI app landscape.
Japan: AI as a Decision-Making Tool
In Japan, a survey by NEXER Group revealed that 45.3% of consumers cite generative AI responses as a deciding factor in purchasing products or services. This indicates a shift from AI as a mere information source to a trusted advisor in consumer decision-making processes.
Context & numbers
Price Wars End; Prices Stabilize
The intense price wars among Chinese large model providers appear to have subsided. A report by the China Academy of Information and Communications Technology (CAICT) released on October 23, 2026, noted that the average price for domestic large model token services rose to 13.46 RMB in 2026 (based on Jan–Aug data). While still significantly lower than foreign competitors, this marks a shift away from the previous race-to-the-bottom pricing strategy.
Token Usage Debate
There is ongoing debate regarding the distribution of AI token usage in China. While some reports suggest over 50% of AI token usage is concentrated in short dramas and video generation, ByteDance disputed this, claiming video-generation models account for only about 10% of its overall computing resources. This discrepancy highlights challenges in accurately measuring and monetizing compute resources.
On the radar
Kimi K3.1 Pro Launch
Moonshot AI is scheduled to release its new agent model, Kimi-K3.1 Pro, this week (October 26–30, 2026). This update is expected to enhance agent capabilities, competing with recent releases from global players like GPT-6.1 Terra.
DeepSeek Funding Round
Reports indicate that DeepSeek is in the process of raising approximately $15 billion, though the round is not yet closed. This massive funding effort signals continued aggressive expansion and R&D investment despite earlier market concerns.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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