China Closes Gap With U.S. in Brain-Computer Interface Race as Rivalry Heats Up

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AsianFin -- China and the U.S. are once again facing off in a high-stakes technology race — this time in brain-computer interfaces (BCI), a frontier field where machines and minds directly interact.

On June 14, the Chinese Academy of Sciences (CAS) announced the nation’s first clinical trial of an invasive BCI device, marking China as the second country globally, after the U.S., to reach the human trial stage with this cutting-edge technology. The trial, led by CAS’s Center for Excellence in Brain Science and Intelligence Technology in collaboration with Fudan University’s Huashan Hospital, represents a milestone in China’s fast-tracked efforts to close the innovation gap with the West.

The announcement came just two days after Elon Musk’s Neuralink filed with the U.S. Securities and Exchange Commission to raise up to $649 million in fresh equity, fueling development of its own invasive BCI system, dubbed “The Link.” The timing highlights an emerging pattern of tit-for-tat progress between the world’s top two tech powers, each vying for dominance in what some scientists view as the next general-purpose technology platform.

The Chinese team previously tested its BCI system on rhesus monkeys, which learned to manipulate cursors and type through neural signals. The system remained stable even after removal and reimplantation — a key technical hurdle for human application.

In March, a human trial began involving a man who lost all four limbs in an electrical accident. Within weeks of training, he was able to play video games with cursor precision comparable to an average user on a touchpad. Researchers aim to advance toward robotic arm control and more complex interactions with robotic pets and embodied AI.

Critically, the system is powered by what China claims is the world’s smallest and most flexible invasive neural electrode. With a footprint one-fifth the size of Neuralink’s equivalent and a softness likened to cellular adhesion forces, the interface minimizes brain tissue damage. Its 26mm coin-sized implant is also thinner than Neuralink’s and doesn’t require full cranial penetration, reducing surgical risk and recovery time.

The entire system features a self-developed neural decoder that processes motor intention and generates commands within a 10-millisecond loop, fast enough to support high-speed activities like racing games.

Once thought to trail the U.S. by up to eight years in BCI, China now appears to have cut that lead to under three. Neuralink’s first human chip implant occurred in January 2024 — only 15 months ahead of China’s March trial.

China has also made breakthroughs in semi-invasive systems. In March, the Beijing Institute for Brain Disorders and its partners implanted a flexible, wireless BCI called “Beinao No. 1” in patients with ALS and paralysis, achieving real-time language decoding with up to 52% accuracy after one week. Its 128-channel signal throughput set a global record, enabling nuanced motor control and communication for patients otherwise locked in by disease.

China’s rapid advance is not confined to research hubs like Beijing and Shanghai. In May, a national BCI cohort trial was launched, aiming to enroll 30 to 50 patients across 10 centers by 2025. Clinics and research wards dedicated to BCI have opened in Central and South China, including at Tongji and Zhujiang hospitals.

Clinical trials are also accelerating. China registered 31 BCI-related trials in 2024 — triple the number in 2023 — and is on pace to surpass that in 2025 with 18 trials already underway by midyear.

In parallel, regulators are preparing for commercialization. China’s National Healthcare Security Administration in March added BCI implantation and adaptation procedures to its list of reimbursable services. Hubei Province became the first to release official BCI pricing. Meanwhile, China’s first BCI medical insurance data research center launched in June.

Despite progress, China’s BCI industry still lags the U.S. in funding scale. In February, Chinese BCI firm Jieti Medical raised a record 350 million yuan ($48 million) — the country’s largest single financing in the sector. That pales in comparison to Neuralink, whose new offering could push its total raised capital past $1.6 billion and its valuation above $9 billion.

U.S. firms continue to set the pace. Neuralink has now implanted devices in three patients and received FDA clearance for trials using its N1 chip to control robotic limbs. Precision Neuroscience, a rival firm, secured $102 million in Series C funding and received regulatory approval to test its ultra-thin Layer 7 interface in humans. Synchron, another U.S. player, is pushing cross-industry collaborations, partnering with Apple and NVIDIA to integrate BCI with consumer and AI platforms.

According to a joint study by the National Library of Medicine and Zheshang Securities, China trails only the U.S. in both the volume and influence of BCI-related academic research. The two countries have significantly outpaced other nations over the past decade.

With BCI viewed as a transformative platform — enabling not only neurorehabilitation but also future applications in augmented intelligence — Beijing is treating it as a national strategic priority. The technology features prominently in China’s Brain Project and associated funding streams under the “brain science and brain-inspired intelligence” initiative.

While no player has yet crossed the commercialization finish line, the race is clearly intensifying. China’s swift transition from laboratory to clinic — backed by regulatory, academic, and financial tailwinds — underscores its ambitions to lead not only in AI, but in the direct interface between mind and machine.

As China and the U.S. deepen their tech rivalry across domains from semiconductors to space, brain-computer interfaces may soon become the next high frontier.