China’s Brain-Computer Interface Industry Surges Ahead: A New Era of Innovation
China’s brain-computer interface (BCI) industry is experiencing a rapid transformation, transitioning from research-focused endeavors to large-scale commercialization. This shift is propelled by robust policy support, extensive clinical trials, and a surge in investor interest. Entrepreneurs like Phoenix Peng, co-founder of NeuroXess and founder of Gestala, are at the forefront of this movement, developing both implantable and noninvasive BCI technologies.
Peng highlights the proactive steps taken by provinces such as Sichuan, Hubei, and Zhejiang, which have established medical service pricing for BCI procedures. This initiative accelerates the integration of BCI treatments into the national medical insurance system, facilitating broader access and adoption. Looking ahead, Peng envisions BCI applications extending beyond medical treatments to encompass human augmentation, bridging the gap between human cognition and artificial intelligence.
Over the next three to five years, the primary focus of BCI applications is expected to remain within the healthcare sector. As insurance coverage expands, the market is projected to reach a multibillion-dollar scale. In August 2025, China’s industry ministry, in collaboration with six other agencies, unveiled a national roadmap to expedite BCI development. This plan sets ambitious goals, including achieving major technical milestones by 2027, establishing common industry standards, and developing a comprehensive supply chain by 2030. The overarching objective is to cultivate globally competitive BCI companies and support specialized firms within the industry.
Several key factors are driving China’s rapid progress in the BCI sector:
1. Strong Policy Support: The Chinese government has demonstrated a commitment to BCI advancement through cross-department collaboration, aligning technical standards, and facilitating medical reimbursement processes. In December 2025, during the Shenzhen BCI & Human-Computer Interaction Expo, China announced an 11.6 billion yuan ($165 million) brain science fund to support BCI companies from research through commercialization.
2. Extensive Clinical Resources: China’s vast patient population and relatively lower research costs accelerate clinical trials. The national health insurance system enables quicker commercialization once state approval is granted. Notably, researchers have completed the country’s first fully implanted, wireless BCI trial—only the second globally—allowing a paralyzed patient to control devices without external hardware.
3. Mature Industrial Manufacturing: China’s well-established industrial manufacturing capabilities, spanning semiconductors, artificial intelligence, and medical hardware, support rapid research and development as well as prototyping efforts.
4. Strategic Investment: Both state-led funds and private capital are increasingly investing in the BCI market under national initiatives. For instance, Shanghai-based BCI startup StairMed Technology raised $48 million (350 million yuan) in Series B funding in February 2025. Additionally, BrainCo, a neurotechnology company developing noninvasive BCIs and bionic limbs, has reportedly filed for a Hong Kong IPO after raising $287 million (2 billion yuan) earlier this year. Peng’s company, Gestala, launched in January and is currently in discussions with investors to close an angel round soon.
Collectively, China’s BCI startups are positioning themselves to challenge U.S. leaders like Neuralink, Synchron, and Paradromics. Prominent players in China include NeuroXess, Neuracle, NeuralMatrix, BrainCo, Bo Rui Kang Tech, Aoyi Tech, Brainland Tech, and Zhiran Medical. These companies are exploring various approaches, from implantable flexible interfaces to noninvasive brain-computer technologies.
The Chinese BCI market was projected to grow to more than $530 million (3.8 billion yuan) in 2025, up from 3.2 billion yuan in 2024, with projections estimating the market will exceed 120 billion yuan by 2040.
