Elon Musk’s Neuralink may publicly position itself as a leader in brain-computer interfaces (BCIs), but China’s BCI sector is already advancing from research to practical application. Startups in China are rapidly moving to commercialize both implantable and noninvasive BCIs, supported by favorable policies, increased clinical trials, and heightened investor interest, according to Phoenix Peng, founder of two BCI startups: NeuroXess and Gestala.
Several Chinese provinces have already established medical service pricing for BCIs, facilitating their integration into the national insurance system. Peng envisions BCIs extending beyond medical uses to human enhancement over time.
Peng highlighted the anticipated deep integration of neuroscience and AI, predicting BCIs as the ultimate bridge between human and AI intelligence, a futuristic market with vast potential. In the immediate future, BCIs are expected to remain healthcare-focused, with China seeking to build a competitive BCI industry by 2030, supported by a roadmap released in August 2025 targeting key milestones by 2027.
China’s swift progress in the BCI field can be attributed to four main factors, Peng told TechCrunch. The first is strong policy support enabling cross-departmental collaboration, exemplified by a significant brain science funding initiative. The second involves vast clinical resources facilitating trials and commercialization, expedited by national health insurance. In comparison, the U.S. and Europe face more fragmented approval processes.
The third factor is China’s robust industrial manufacturing base, supporting rapid R&D and prototyping. Lastly, strategic investment from both government and private sectors has accelerated market development. Companies like StairMed Technology and BrainCo have received substantial funding, while startups like Peng’s Gestala are seeking further investment to enhance their market presence.
China’s BCI startups are becoming formidable competitors to U.S. companies such as Neuralink, with front-runners like NeuroXess, Neuracle, and BrainCo leading the charge. The Chinese BCI market is projected to grow significantly, potentially reaching 120 billion yuan by 2040.
BCIs are developing along two main paths: invasive systems like those developed by NeuroXess and Neuralink, which offer high precision but come with surgical risks, and noninvasive systems from companies like NeuroSky and BrainCo, which emphasize safety and convenience. Emerging technologies, including ultrasound BCIs, are expanding research capabilities and commercial opportunities.
Noninvasive BCIs, such as those developed by Gestala, are overcoming adoption challenges since they don’t require brain surgery. Such technologies target high-prevalence conditions like chronic pain or depression and are expected to gain commercial traction. Gestala is preparing to launch its first-generation product, reporting promising early trial results.
As the BCI sector evolves, regulatory standards are anticipated to align more closely with international norms, with particular attention to data sovereignty and ethical governance. This promises to harmonize Chinese regulations with global frameworks, ensuring responsible development within this rapidly advancing field.