China’s swift moves on brain-computer interfaces challenge Europe and the US

China in March approved an invasive brain-computer interface (BCI, 脑机接口) for commercial use – the first country in the world to do so. Europe’s risk-averse and ethics-heavy approach to BCI governance may harm its ability to compete in this technology.

The interface by Shanghai-based Neuracle Medical Technology (博睿康) has already helped 32 patients with spinal cord injuries to regain hand movement. It consists of a coin-sized electrode placed in the brain to pick up signals when a patient imagines movement. The signals  are then wirelessly transmitted to a robotic glove. More than 30 hospitals across China now operate BCI units, with applications expanding to neurodegenerative and psychiatric care.

Europe can also boast world-class academic research and pioneering firms in this area, such as MindMaze and CorTec, but it will need to strengthen support via policy and investment to ensure that its BCI industry isn’t left behind. Neuracle’s approval is evidence that Beijing sees this frontier technology as highly strategic and even militarily significant.

In 2025, China introduced a roadmap for the development of world-class BCI companies by 2030, while its 15th Five Year Plan endorses BCI as a future industry. The government launched a CNY 11.6 billion (EUR 1.5 billion) fund for brain science in December 2025, and BCI firms raised CNY 4 billion (EUR 498 million) in investments in Q1 2026 alone, surpassing their 2025 total. Major beneficiaries include BrainCo (强脑), StairMed (阶梯), Gestala (格式塔) and NeuroXess (脑虎), who have set up “BCI super-factories” for data processing. China’s BCI ecosystem has entered the phase of commercial scaling, even if devices like Neuracle’s still have some way to go before they are commercially viable.

Moreover, China is seeking to set global vocabularies, data formats and reference architectures through the International Organization for Standardization (ISO/IEC JTC 1/SC 43) and the International Telecommunication Union. China already introduced BCI terminology for domestic use in 2025.

Altynay Junusova, MERICS Analyst: “As China’s nascent technology excels at scale, for Europe, prioritizing safety helps mitigate risk, but it may also slow clinical translation and commercial rollout. Europe, therefore, needs to match this strategic intent and policy support that China offers its BCI industry, by strengthening investment and ensuring that the BCI industry serves EU interests, too.”