China's brain-computer interface industry is racing ahead | TechCrunch

TechCrunch

by Kate Park

February 22, 2026

AI-Generated Deep Dive Summary

China’s brain-computer interface (BCI) industry is surging forward, with startups rapidly commercializing both implantable and noninvasive technologies. Backed by strong government support, expanding clinical trials, and growing investor interest, the sector is transitioning from research to real-world applications at an unprecedented pace. Phoenix Peng, a co-founder of NeuroXess and founder of Gestala, highlights the potential of BCIs to transform healthcare and beyond. Provinces like Sichuan, Hubei, and Zhejiang have already set pricing for BCI services, accelerating its inclusion in the national medical insurance system. This move not only facilitates quicker commercialization but also positions China as a global leader in this cutting-edge field. The rapid progress of BCIs in China is driven by four key factors. First, robust policy support has created a favorable ecosystem, aligning technical standards and streamlining reimbursement processes. In December 2025, China announced an 11.6 billion yuan ($165 million) brain science fund to boost BCI companies from research to commercialization. Second, the country’s vast clinical resources, including large patient pools and lower research costs, are accelerating trials. For instance, researchers completed the first fully implanted, wireless BCI trial in China, enabling a paralyzed patient to control devices without external hardware—a significant milestone in this field. Third, China’s mature industrial manufacturing capabilities, spanning semiconductors, AI, and medical hardware, support rapid R&D and prototyping. This has allowed Chinese firms to achieve clinical progress in areas like motor and language decoding, spinal cord reconstruction, and stroke rehabilitation. Fourth, strategic investments are surging, with both state-led funds and private capital pouring into the sector. Recent deals include Shanghai-based StairMed Technology raising $48 million (350 million yuan) in Series B funding, underscoring the growing interest in BCIs. The implications of China’s BCI advancements extend far beyond healthcare. Peng envisions a future where BCIs bridge carbon-based and silicon-based intelligence, enabling direct high-bandwidth connections between the human brain and AI. While this vision may seem distant, it represents an immense market opportunity with vast potential for human augmentation and innovation. As BCIs continue to evolve, their integration into everyday life could revolutionize industries, from healthcare to education and beyond. For tech enthusiasts and investors alike, China’s BCI industry offers a glimpse into the future of human

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Originally published on TechCrunch on 2/22/2026