Teclast, a manufacturer of MP3 players based in China, has introduced the TL-T29. This device is very slim at 9.8 mm and has a 2 inch touchscreen. It looks like the TL-T29 is capable of playing more than just audio files.

Reports have come in that it is video-enabled, but nothing about how much video can be played for the amount of battery time. As for audio files, it is believed that it can play 15 hours worth on a single charge. Other features include an FM tuner and some sort of picture viewing technique. Since the memory varies from 1 to 2 to 4 GB worth, it is not known how much video or audio can be stored on this little guy. The varying amount of memory will most certainly make the price variable as well.

I wonder if this MP3 player will somehow be reverse-Shanghaied to the States.

Update:

The specs are now available for this MP3 Player

It looks like it can store 4GB at $125.
It supports MP3, WMA, AVI, MPEG1, JPG, GIF, and TXT.

Via dapreview.net