Beijing encourages non-invasive brain technology as challenge to Musk

While Elon Musk's Neuralink has drawn global attention with brain implants designed to restore function for people with severe disabilities, Chinese companies are pursuing a different vision for brain-computer interfaces (BCIs): connecting the brain to machines without opening the skull.

The technology has become a strategic priority for Beijing, which identified brain-computer interfaces as a "future industry" in its latest Five-Year Plan. Chinese regulators have also approved what officials describe as the world's first minimally invasive commercial BCI device, developed by Neuracle Medical Technology to help restore hand function in patients with spinal cord injuries, as American media points out.

The developments come as global interest in BCIs accelerates, with companies demonstrating systems that enable people with neurological conditions such as amyotrophic lateral sclerosis (ALS) to communicate, type and even play video games using brain signals alone.

As the field advances, brain-computer interfaces are emerging as another area of technological competition between the United States and China.

Among China's leading players is BrainCo, one of the so-called "six little dragons"—a group of high-profile technology startups based in the eastern city of Hangzhou.

Founded in 2015 after emerging from Harvard Innovation Labs, BrainCo has focused on non-invasive BCI technology, developing prosthetic limbs and wearable devices that interpret electrical signals generated by the brain and muscles.

Rui Ma, founder of the Tech Buzz China research platform, said that while current BCI applications have already transformed the lives of patients with severe disabilities, the industry's biggest commercial opportunity may ultimately lie in enhancing the abilities of healthy users.

BrainCo partner and senior vice president Nyx He told the American outlet CNBC that implanted and non-invasive brain interfaces are designed to solve different problems rather than compete directly.

Some neurological conditions require devices implanted inside the brain, she said, but many others could be addressed through external technologies that are safer, less expensive and easier for patients to accept.

Among BrainCo's products are bionic hands that have received approval from the US Food and Drug Administration. The prosthetics detect electrical signals produced by an amputee's nerves and muscles before translating those signals into movements of individual fingers.

The company also produces wearable devices, including a sleep aid that it says uses low-intensity electrical stimulation to influence neurochemicals associated with relaxation and stress reduction.

BrainCo has attracted significant investor backing, raising 2 billion yuan (approximately $280 million) in a funding round co-led by IDG Capital and Walden International, the venture capital firm founded by Intel CEO Lip-Bu Tan.

According to He, one of the greatest technical challenges facing non-invasive BCIs is accurately detecting and interpreting extremely weak brain signals through the skull. BrainCo says it has addressed this challenge by developing dry-electrode sensors alongside artificial intelligence algorithms capable of decoding those signals.

The company's long-term strategy begins with medical applications for patients with the greatest clinical need, including amputees whose devices are often covered by insurance. It then plans to expand into treatments for neurological and psychiatric conditions such as attention deficit hyperactivity disorder (ADHD) and depression before eventually targeting the broader consumer electronics market.

BrainCo also intends to license its BCI platform to other companies developing brain-enabled products, a business that He expects to become the firm's largest source of revenue over time.

The company's ambitions align closely with China's broader technology strategy.

In a commentary published this week by state media, a researcher from the Chinese Academy of Sciences argued that non-invasive brain-computer interfaces are likely to evolve in stages—from healthcare applications in the near term to uses in autonomous vehicles, smart manufacturing and, ultimately, mass-market consumer devices.

The vision underscores China's growing commitment to becoming a global leader in brain-computer interface technology, while highlighting a contrasting approach to the United States, where much of the public attention has focused on surgically implanted systems such as Neuralink.

By Nazrin Sadigova