While Elon Musk’s Neuralink is often heralded as the epitome of brain-computer interface (BCI) innovation, China’s BCI industry is already making significant strides in the field. A new generation of startups, supported by political will, expanding clinical trials, and increasing investor interest, is swiftly moving from research to commercialization. This information comes from Phoenix Peng, a serial entrepreneur who founded two BCI startups: NeuroXess, a manufacturer of BCI implants, and Gestala, a company focusing on non-invasive ultrasound BCI technology.
China’s belief in the potential of this market is not merely theoretical—it’s already being implemented in practice. Provinces like Sichuan, Hubei, and Zhejiang have set prices for medical services using BCI, thus fast-tracking its inclusion in the national health insurance system. Peng anticipates that the technology will eventually expand beyond its current medical applications to further human augmentation.
“I have always maintained that neuroscience and AI are two sides of the same coin,” Peng said. “They are intended for deep integration, achieving direct, high-bandwidth connections between the human brain and AI. BCI will serve as the ultimate bridge between carbon-based and silicon-based intelligence. Although this may seem far away, it represents a market of unimaginable scale in the future.”
Four Determining Factors of BCI in China
BCI use is expected to largely remain within the healthcare sector in the next three to five years. However, as insurance coverage expands, the market is projected to grow into a multi-billion dollar industry, according to Peng. In August 2025, China’s Ministry of Industry, along with six other agencies, released a national roadmap to further accelerate the development of BCIs. This plan sets major technical milestones to be achieved by 2027, industry standards, and a complete supply chain to be established by 2030. The ultimate goal is to create globally competitive BCI businesses and support small specialist firms.
When asked about the factors propelling China’s rapid advancements in BCI, Peng identifies four key areas. Firstly, strong policy support, characterized by cross-departmental collaboration in aligning technical standards and medical reimbursement. Secondly, the availability of vast clinical resources, including large patient pools and lower research costs, which enable faster trials. Thirdly, the maturity of China’s manufacturing industry, which includes semiconductors, AI, and medical equipment, facilitates rapid R&D and prototyping. Lastly, strategic market investments, bolstered by a significant increase in public funds and private capital through national initiatives.
Types of BCI
BCIs can be broadly categorized into two types. The first type includes invasive electrophysiological BCIs, such as those produced by NeuroXess and Neuralink, which involve implanting electrodes in the brain for precise neuron-level signals. The second type includes non-invasive systems like those developed by NeuroSky and BrainCo, which may sacrifice some precision for safety and ease of use.
Emerging methodologies, including ultrasound, magnetoencephalographic imaging, transcranial magnetic stimulation, optical methods, and hybrid BCIs, are providing researchers with new tools to read and influence brain activity. Startup founders believe non-invasive technology could help overcome adoption barriers, as not everyone is willing to undergo brain surgery to have a device implanted.
The Years Ahead
Over the next five years, industry players expect China’s BCI regulations to align more closely with international standards, with a particular focus on regulatory approval and data sovereignty. Chinese regulators are likely to strengthen oversight of invasive devices, as well as data generated by all BCI devices, while making it easier to approve non-invasive technologies.
Regarding the ethics of brain-implanted or manipulative devices, China plans to strengthen informed consent requirements, expand ethical review beyond medicine, and move toward unified technical standards for clinical evaluation.
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