While companies like Neuralink grab headlines, China is quietly advancing in the brain-computer interface (BCI) field, rapidly moving from research phase to commercialization.
Current Landscape
A growing ecosystem of startups is driving both implantable and non-invasive BCIs, backed by favorable government policies, expanding clinical trials, and increasing investor interest. Phoenix Peng, founder of NeuroXess (implantable BCIs) and Gestala (non-invasive ultrasound BCI) startups, notes that provinces like Sichuan, Hubei, and Zhejiang have already established pricing for BCI medical services, paving the way for their inclusion in the national health system.
According to Peng, although these technologies will initially focus on medical applications, in the long term they could transcend toward human augmentation. “Neuroscience and AI are destined for deep integration,” he states, describing BCIs as the bridge between biological and artificial intelligence.
Key Factors Driving China’s Progress
Peng identifies four pillars explaining the country’s progress in this field:
- Political Support: In August 2025, the government published a national roadmap with technical milestones for 2027 and the goal of creating globally competitive companies by 2030. Additionally, a $165 million neuroscience fund was announced in December to support commercialization.
- Clinical Advantages: China has extensive patient pools and lower research costs. By mid-2025, over 50 clinical trials with flexible implantable BCIs had been completed. The national health system also accelerates adoption following regulatory approval.
- Industrial Capacity: Maturity in semiconductors, AI, and medical hardware facilitates rapid prototyping and development.
- Strategic Investment: State funds and private capital converge in the sector, with notable operations such as the $48 million raised by Step Ladder Med Tech or the $287 million by BrainCo, which is also preparing its IPO.
Market Growth
The Chinese BCI market reached $530 million in 2025, with projections exceeding $16.8 billion by 2040. The most active players include NeuroXess, Neuracle, NeuralMatrix, BrainCo, and Zhiran Medical.
Two Technological Approaches
BCIs are developing in two main directions:
- Invasive (like NeuroXess or Neuralink): Implant electrodes to obtain precise signals, but with surgical risks.
- Non-invasive (like BrainCo): Use headsets or headbands that read electrical activity through the skull, prioritizing safety over precision.
Emerging approaches such as ultrasound (Gestala, Fusion Labs) are gaining ground to treat prevalent conditions like chronic pain or depression, with greater patient acceptance. Gestala plans to launch its first product in 2025 following promising results: one session reduced pain scores by 50% with effects lasting up to two weeks.
Regulatory Outlook
In the coming years, China is expected to align its regulations with international standards (IEC, ISO, FDA), with stricter oversight for invasive devices and their data, while facilitating approval for non-invasive technologies. Informed consent requirements and ethical review will also be strengthened.
By: Nestor Castillo, ForAllTechNews Director