Summary of Key Points
Recently, the brain-computer interface (BCI) industry has seen a surge in activity: Borui Kang has become the first company in the world to launch a semi-invasive BCI medical device, and it has also applied for an IPO on the STAR Market; BrainHug Technology’s fully invasive system has begun clinical trials; Capital is pouring into the sector (with quarter-one 2026 funding exceeding the entire year of 2025), and policies are starting to provide support (Guangdong has included it in medical insurance, while Shanghai’s HuHuiBao covers related expenses). However, the industry is still in its early stages. Technologically, there is a need to balance signal accuracy and safety, and the commercialization pathway is not yet fully established. There is still a distance before BCI becomes affordable and accessible to the general public. Both China and the United States have their advantages in this field and are competing with each other.
What is a Brain-Computer Interface (BCI)? What are the differences among the three approaches?
Simply put, a BCI acts as a “translator” between the brain and machines: when the brain wants to perform an action, neurons generate electrical signals, which the device captures and translates into machine commands to move gloves, robotic arms, etc.
There are three main approaches based on where the electrodes are placed:
- Non-invasive: Electrodes are placed on the scalp (like wearing a hat), which is safe and does not require surgery, but the signal quality is somewhat limited (similar to listening through a wall). This approach is suitable for consumer applications such as sleep monitoring and attention training.
- Semi-invasive: Electrodes are placed under the skull but on the surface of the brain (without entering the brain), providing clearer signals than non-invasive methods and lower risks. Borui Kang is using this approach to help paralyzed patients grasp objects.
- Invasive: Electrodes are directly inserted into the brain, providing the most accurate signals (even at the level of individual neurons), but the procedure involves opening the skull and carries higher risks. Elon Musk’s Neuralink and China’s BrainHug Technology are using this approach to achieve more precise control (e.g., playing chess with thoughts).
There is no absolute superiority among these approaches; it depends on the balance between signal accuracy and safety. Invasive methods are suitable for critical medical applications like paralysis, while non-invasive methods are more appropriate for everyday use by the general public.
Which domestic companies are leading the way? What are their strategies?
Several domestic companies are involved in this field, with Borui Kang and QiangNao Technology being the front-runners in the capital market:
- Borui Kang: Focusing on “serious medical” applications, it obtained the first semi-invasive BCI device approval in the world and is now working to get it included in medical insurance. It is still relying on its existing business (electroencephalogram (EEG) machines for revenue and suffered a loss of 230 million yuan in 2025, relying on non-invasive products to support its semi-invasive efforts.
- QiangNao Technology: Adopting a “consumer + medical” dual approach, it develops devices for attention training and ADHD treatment. It raised 2 billion yuan in financing (the second-largest round globally) and is preparing for an IPO on the Hong Kong stock market. The non-invasive route has significant commercial potential but may face skepticism about whether it truly constitutes a BCI.
- BrainHug Technology: Specializing in fully invasive systems, using silk materials for electrodes that are more compatible with the human body. It has just started clinical trials and generates revenue by selling research equipment to laboratories (revenue exceeded 100 million yuan in the first three quarters of 2025), although the market for such equipment is relatively limited.
- Other players: Companies like Zhiran Medical are developing stretchable electrodes that cause less damage, while others are exploring minimally invasive implantation methods to reduce trauma. All are competing for a share of the medical market.
Everyone is still in the early stages, and Borui Kang’s advantage lies mainly in its earlier approval; there is no absolute technological barrier that prevents other companies from obtaining approvals as well.
Why has the industry suddenly become so popular? Why is there such support from capital and policy?
There are three main reasons:
1. Technological breakthroughs: BCI technology has moved from the laboratory to clinical use (with Borui Kang’s product being launched and BrainHug’s trials proving the feasibility of this approach).
2. Policy support: The government has identified BCI as a key industry for the 14th Five-Year Plan, with multiple departments issuing guidelines to develop the industry chain. Regions like Guangdong and Shanghai have included BCI in medical insurance programs.
3. Market potential: According to ZhiShi Consulting, the global market could reach 50 billion US dollars by 2035, with China accounting for nearly 100 billion yuan. Investors see the potential for growth—quarter-one 2026 funding amounted to 3.8 billion yuan, exceeding the annual total of 2025 (1.45 billion yuan), with even Alibaba participating in investments.
However, there is also a bubble: Some companies are marketing ordinary EEG devices as BCI products, but only a few truly possess significant technological capabilities.
How far is it before BCI becomes accessible to the general public and profitable for companies?
There are several commercialization paths, but none have been fully established:
1. Selling research equipment: BrainHug Technology generates revenue from this, but the number of laboratories using such equipment is limited.
2. Selling EEG machines: Many non-invasive companies obtain Class 2 medical device approvals and sell them to hospitals for testing; these devices are not directly related to BCI technology but represent traditional medical equipment.
3. Consumer products: Companies like QiangNao Technology develop attention training products, and SuNao Technology offers sleep masks. These products are closer to generating revenue but have limited signal accuracy and may face skepticism.
4. Custom development: Providing technical support to small companies, although this approach has a smaller market scale.
The challenges include:
- Technology: Invasive methods require addressing safety concerns, while non-invasive methods suffer from weak signal quality.
- Time: Medical product validation takes a long time; despite Borui Kang’s approval, there is still a lack of clinical evidence.
- Costs: Invasive BCI components are expensive, and even with insurance coverage, the out-of-pocket cost remains high for most people.
The industry consensus is that non-invasive methods will likely be the first to achieve commercial success (e.g., in sleep and rehabilitation applications), but invasive methods hold greater market potential due to their ability to address critical medical issues like paralysis and aphasia.
Competition between China and the United States: Who is stronger?
Both China and the US are leaders in this field:
- US advantages: Early adoption (under the Obama-era “Brain Project”), strong foundational technology (many patents in key areas like neural control), and a well-developed ecosystem (from research to FDA approval to capital support). Neuralink has made significant progress with invasive BCI, but Musk’s plans for mass production by 2026 are considered ambitious.
- China’s advantages: Faster application development and abundant clinical resources. CNN has noted that although China started later (by 20 years), it has rapidly caught up.
However, China still lags in some foundational technologies (e.g., electrode materials and algorithm development) but is making rapid progress in practical applications.
Conclusion
BCI is no longer a concept from science fiction movies; it has entered hospitals. However, to become widely available products for the general public, challenges such as technology, cost, and validation must be overcome. The industry is currently “hot but not chaotic”—the enthusiasm comes from policy and capital support, while commercialization still requires time. In the next few years, non-invasive methods are expected to gain popularity first, with invasive methods making breakthroughs in critical medical applications.
(The text is written in plain language, avoiding technical jargon and focusing on explaining what BCI is, who is involved, why it’s popular, and how far it is from becoming a reality for the general public.)