February 23, 2026 – While Elon Musk’s Neuralink promotes itself as a pioneer in brain-computer interfaces (BCIs), China’s BCI sector is quietly moving from research to commercialization, with startups racing to scale both implantable and noninvasive devices.

Phoenix Peng, founder of two BCI startups, NeuroXess and Gestala, highlighted the country’s rapid progress. Provinces such as Sichuan, Hubei, and Zhejiang have already set medical service pricing for BCI treatments, enabling inclusion in national medical insurance. Peng envisions BCIs extending beyond medicine to “human augmentation” and AI integration.

China’s BCI boom is being driven by four factors:

1. Policy support: National roadmaps and a $165 million brain science fund are accelerating development and standard-setting.
2. Clinical resources: Large patient populations and lower research costs enable faster trials and quicker commercialization. Notably, China recently completed the second fully implanted, wireless BCI trial globally.
3. Industrial capabilities: Mature semiconductor, AI, and medical device industries support rapid R&D and prototyping.
4. Strategic investment: Both state-led and private capital are flowing into the sector, with deals such as StairMed Technology’s $48 million Series B and BrainCo’s $287 million funding round signaling investor confidence.

Market growth and players
China’s BCI market is expected to reach $530 million in 2025, up from 3.2 billion yuan in 2024, with projections exceeding 120 billion yuan by 2040. Key startups include NeuroXess, Neuracle, NeuralMatrix, BrainCo, Bo Rui Kang Tech, Aoyi Tech, Brainland Tech, and Zhiran Medical.

BCI technologies are developing along two paths: invasive electrophysiological implants, such as NeuroXess, and noninvasive systems, including EEG-based devices from BrainCo and ultrasound solutions from Gestala. Noninvasive devices are easier to adopt, safer, and commercially scalable, targeting conditions like chronic pain, stroke, and depression. Gestala expects to release its first-generation product by Q3, with early trials showing a 50% reduction in pain scores per session.

Looking ahead
Over the next five years, China is expected to align BCI regulations with international standards, tightening oversight of invasive devices while easing approval for noninvasive technologies. Ethical frameworks will be strengthened with broader informed-consent requirements and unified technical standards for clinical evaluation.

China’s rapidly growing BCI ecosystem positions it to challenge U.S. leaders such as Neuralink, Synchron, and Paradromics, setting the stage for a multibillion-dollar market in the coming decades.