China's brain-computer interface (BCI) sector is progressing swiftly from research to commercial scale, challenging US leaders like Neuralink. A new wave of startups is developing both implantable and non-invasive systems, supported by strong government policy, extensive clinical resources, and growing investment. Industry founders predict the technology will evolve from treating diseases to broader human augmentation.
In August 2025, China's Ministry of Industry and Information Technology and six other agencies released a national development roadmap for BCIs. The plan sets technical milestones for 2027, aims for common industry standards and a complete supply chain by 2030, and seeks to cultivate globally competitive companies.
Four Pillars of Progress
According to Phoenix Peng, founder of ultrasound BCI startup Gestala and co-founder of implant maker NeuroXess, China's rapid advancement rests on four factors. "The first one is strong policy support," Peng told TechCrunch, highlighting cross-department collaboration that aligns technical standards with medical reimbursement. Provinces including Sichuan, Hubei, and Zhejiang have already set medical service pricing for BCI procedures.
The second factor is vast clinical resources. China's large patient pools and lower research costs accelerate trials, and inclusion in the national health insurance system speeds commercialisation post-approval. Researchers have completed the country's first fully implanted, wireless BCI trial—only the second globally—enabling a paralysed patient to control devices without external hardware.
"In traditional electrical BCIs, Chinese firms have achieved clinical progress in motor and language decoding, spinal cord reconstruction, and stroke rehabilitation, with over 50 flexible implantable BCI clinical trials completed by mid-2025," Peng stated.
Market Growth and Investment Surge
The third and fourth pillars are China's mature industrial manufacturing—spanning semiconductors, AI, and medical hardware—and strategic investment from both state and private capital. Recent deals include Shanghai-based StairMed Technology raising $48 million in a February 2025 Series B round. Neurotech firm BrainCo, developing non-invasive BCIs and bionic limbs, has reportedly filed for a Hong Kong IPO after raising $287 million earlier in the year.
This activity is fuelling significant market growth. China's BCI market was expected to exceed $530 million (3.8 billion yuan) in 2025, up from 3.2 billion yuan in 2024, with projections suggesting it could surpass 120 billion yuan by 2040.
Diverse Technological Approaches
The industry is pursuing two main paths: invasive electrophysiological BCIs like those from NeuroXess and Neuralink, which implant electrodes for precise signals but carry surgical risks; and non-invasive systems from companies like BrainCo, which trade some precision for safety and ease of use.
Emerging approaches are broadening the field further. Ultrasound BCIs from companies like OpenAI-backed Merge Labs and Gestala target high-prevalence conditions such as chronic pain, stroke, and depression. Gestala expects to roll out its first-generation product by the third quarter of 2025, with early trials showing a single session reduced pain scores by 50%, with effects lasting one to two weeks.
Regulatory and Ethical Evolution
Over the next five years, industry insiders anticipate China's BCI regulations will align more closely with international standards, referencing frameworks from bodies like the IEC and ISO and guidance from the US Food and Drug Administration (FDA). Regulators are expected to tighten oversight of invasive devices and the data they generate, while easing approval for non-invasive technologies.
On ethics, China plans to strengthen informed-consent requirements, broaden ethics review beyond medicine, and move toward unified technical standards for clinical evaluation of brain-implanted or manipulating devices.