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China Expands Brain-Computer Interface Industry With Policy Backing And Innovation

  • August 28, 2025
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China is accelerating investment in brain-computer interface (BCI) technologies, positioning the sector as a strategic frontier for innovation and industrial transformation. With applications spanning healthcare, biotechnology, and entertainment, BCIs are emerging as a key driver in the country’s push to achieve leadership in advanced technology industries. Market studies indicate that the industry, while still in early stages, is set for rapid expansion, with new breakthroughs paving the way for advanced prosthetics, neurorehabilitation, and immersive digital experiences.

The BCI industry in China is backed by both public and private initiatives. Several firms have been building expertise for over a decade, accumulating patents and refining products ranging from EEG-based headsets for rehabilitation to implantable electrodes used in neurosurgery. Non-invasive systems dominate the current market, accounting for more than 80 percent of industry value in 2024 due to their safer and easier applications. However, invasive methods, which enable greater precision in controlling neural activity, are projected to gain a stronger foothold in the coming years. The market size is expected to rise from RMB 3.2 billion (US$446 million) in 2024 to RMB 5.58 billion (US$777.7 million) by 2027, reflecting double-digit annual growth.

Policy support plays a central role in shaping the sector. In July 2025, the Ministry of Science and Technology issued the Implementation Opinions on Promoting Innovation and Development of the Brain-Computer Interface Industry. The document outlined milestones for 2027 and 2030, with targets to establish a robust industrial system, achieve internationally competitive breakthroughs in electrodes, chips, and complete systems, and build an ecosystem capable of delivering both medical and consumer applications. Regional governments are also contributing, with Beijing, Shanghai, Guangdong, and Sichuan releasing their own action plans to advance research, pilot projects, and industrial clusters. These plans aim to develop original breakthroughs, nurture leading companies, and enable large-scale adoption across healthcare and industrial sectors.

Beyond policy, demographic and societal needs are fueling demand. With an aging population and rising healthcare pressures, BCIs are being explored for their potential to improve treatment for neurological and psychiatric conditions, enhance rehabilitation, and support long-term health management. At the same time, the entertainment sector is experimenting with BCI-enabled immersive gaming and augmented reality, opening pathways to new commercial ecosystems. The technology is also aligned with China’s New Quality Productive Forces strategy, which seeks to transition the economy toward high-value, knowledge-intensive industries while reducing reliance on low-cost manufacturing.

The industry landscape is increasingly competitive, with leading players such as BrainCo, Neuracle, NeuroXess, and NeuraMatrix active across both invasive and non-invasive segments. Beijing and Tianjin lead in patent activity, while Guangdong hosts the largest number of BCI firms. Companies are targeting diverse applications, from motor rehabilitation and exoskeletons to consumer wellness and neuro-monitoring devices. With foreign investment encouraged and BCI technologies included in the Catalogue of Encouraged Industries for Foreign Investment, international firms also see potential in collaborating with Chinese institutes, entering supply chains, and investing in medical or consumer applications. However, strict regulatory oversight for medical devices, data protection requirements, and domestic competition remain significant challenges for new entrants.

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Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem. 

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Related Topics
  • AI healthcare
  • BCI policy
  • biotech innovation
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  • China BCI
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  • NQPF
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