Inside a Brain-Chip Startup in China | Bloomberg Primer

The video highlights NeuroXess, a Shanghai-based startup advancing brain-computer interface (BCI) technology in China, exemplified by Mr. Zhang, who controls his wheelchair through their innovative device, reflecting China’s rapid progress and government-backed support in this field. While BCIs hold transformative potential for medical treatments and human-technology integration, challenges such as regulatory hurdles, ethical concerns, and commercial viability remain critical considerations for the technology’s future.

The video introduces Mr. Zhang, a man paralyzed from the neck down due to an accident over eight years ago, who now controls his wheelchair using a brain-computer interface (BCI) developed by the Shanghai-based startup NeuroXess. This technology, part of a new wave of clinical trials in China, represents the country’s rapid progress in the BCI field, which has historically been led by US companies. BCIs enable direct communication between the brain and electronic devices by decoding neural signals, potentially transforming medical treatments and human-technology integration.

BCI technology, though gaining recent attention, has roots dating back to the 1970s when electrical brain signals were first mapped to movement patterns. Over the past two decades, human trials have advanced significantly, with tech billionaires fueling mainstream interest. BCIs function by reading electrical signals from neurons that control actions like speaking or moving, and these signals are interpreted using AI algorithms to filter noise and accurately translate brain activity into commands for devices such as prosthetics or computers.

China’s BCI sector is growing rapidly, with funding more than doubling in 2025 and the approval of its first invasive BCI for commercial use in 2026. NeuroXess has been experimenting with various BCI designs, including a less invasive electrode strip placed on the brain’s cortex to reduce scarring and maintain signal quality. Patients like Mr. Zhang undergo extensive training to use these devices, which can also integrate with smart home systems and robotic exoskeletons, potentially restoring mobility. However, challenges remain, including regulatory hurdles, long-term safety concerns, and the high cost of these technologies.

Government support plays a crucial role in China’s BCI development, with the technology designated as a strategic industry in the country’s 15th five-year plan. This status brings clearer guidelines, faster clinical trial approvals, and significant funding, helping startups like NeuroXess accelerate their progress despite relatively limited venture capital compared to the US. The commercial viability of BCIs remains uncertain, with questions about insurance coverage, market demand, and whether the technology will expand beyond medical applications to broader consumer use.

The rise of BCIs also raises important ethical and privacy concerns. As the technology becomes more widespread, issues around neural data access, consent, and potential misuse—such as mind control or military applications—are increasingly relevant. Historical examples include CIA experiments and DARPA-funded research into drone control via BCIs. While current trials focus on improving the lives of people with disabilities, the future of BCIs could significantly reshape human interaction with technology, prompting ongoing debate about regulation and societal impact.