Halfway through 2026, brain-computer interfaces (BCIs) have become the hottest track in the medical technology field.

 

According to TONACEA's statistics, as of early May, total financing in China's BCI industry has exceeded RMB 4.4 billion. In the first quarter alone, there were 17 financing events, raising over RMB 3.8 billion – a single quarter surpassing the total for the entire year of 2025.

 

From large financing rounds landing one after another to the approval of China's first Class III medical device certificate for an invasive BCI, technology once confined to science fiction is accelerating its journey from the laboratory to the clinical ward and into real-world applications.

 

Zhang Qi, Vice President of OY Hand, told TONACEA that this industry surge is not an accidental bubble but the result of a long-term convergence of three forces: shifting societal needs, continuous breakthroughs in neuroscience and engineering, and strong national strategic support.

 

Yet amid the capital frenzy and industry noise, he also repeatedly reminds the industry to stay grounded – BCI technology worldwide is still in its "kindergarten" stage.

 

"Humanity's understanding of the brain's complex network of 86 billion neurons remains extremely rudimentary. Grand visions like memory uploading and mind-melting remain distant scientific fantasies," Zhang added.

 

As he suggests, stripping away the hype, what truly sustains the industry's long-term development are applications that address real patient suffering and create lasting clinical value. As capital becomes more rational and technology returns to its essence, the real story of the BCI industry is just beginning.

 

TONACEA 01: Behind the Boom – Growing Demand for Neurological Diseases

 

The BCI boom was first ignited in the capital markets. As an early-stage hotspot, BCI in 2026 stands at a critical juncture where concept hype and practical implementation are advancing in parallel.

 

Zhang Qi is a unique figure in the industry. He was among the earliest investors in China to systematically cover brain science, making a significant investment in OY Hand in 2022. He officially joined the company in 2024 to lead strategy and financing, witnessing the full journey of this track from "ignored" to "highly anticipated."

He candidly recalls that when he first mentioned BCIs to peers years ago, the typical responses were "too ahead of its time" or "unconventional."

 

In reality, what firmly convinced Zhang of the potential of this direction was not science fiction, but the inelastic demand driven by demographic shifts.

Neurodegenerative diseases such as Alzheimer's and Parkinson's are spreading as the population ages. Mental health issues related to stress are becoming more prominent among younger people. These conditions are all directly linked to brain and nervous system pathology.

 

Moreover, these diseases share a common characteristic: "existing drugs primarily aim to alleviate symptoms and slow progression, but are unable to achieve functional reconstruction and circuit repair of damaged neurons.

"

Authoritative studies, such as the Chinese Guidelines for the Treatment of Parkinson's Disease (Fourth Edition), point out that current pharmacotherapies and conventional treatments can only improve symptoms but cannot halt the neurodegenerative process.

 

BCIs, however, can intervene directly at the neural signal level, promoting neural remodeling through closed-loop feedback and helping patients rebuild core abilities such as movement and sensation, filling clinical gaps that existing treatments have difficulty addressing.

 

This is the core logic behind capital's willingness to continue making heavy, early-stage bets on this track.

 

Driven by authentic and substantial clinical needs, combined with the unique value of the technological approach, BCIs have transformed from an obscure research direction into a golden track that capital cannot ignore. Yet, behind the hype, an often-overlooked reality is that the number of truly focused vertical investment institutions that understand brain science, clinical realities, and technology cycles remains relatively scarce.

 

Zhang notes that there are a limited number of professional investment funds in China with brain science and BCIs as their core theme. OY Hand is one of the few companies to have received early support from both specialized brain science industrial capital and medical capital.

 

This implies that beyond the headline-grabbing financing news, capital that truly understands clinical needs, technology, and industry cycles remains in the minority. A founder of a BCI company previously told TONACEA that, amid the hype, they are seeking more precise capital partners.

 

However, the need for this "precise matching" is not inherently contradictory to investors' core considerations. In Zhang's view, investors ultimately focus on technology implementation, business model viability, team capability, valuation rationality, and long-term growth potential. Medical capital, in particular, places high importance on clinical data, patient benefit, and payment logic.

 

TONACEA 02: No "God-like" Technology – Human Understanding of the Brain Remains Shallow

 

The higher the hype, the more intense the debate. As BCIs are incorporated into national future industry priorities, capital is pouring in, and companies are accelerating their efforts.

 

Behind the noise of this track, two core debates persist: what truly constitutes a BCI? Among invasive, non-invasive, and other pathways, which holds the advantage?

 

The most prominent issue is the blurring of conceptual boundaries. Many companies are capitalizing on the BCI hype, classifying various related products under this umbrella, leading to external skepticism about "hype" and "unsubstantiated claims."

 

According to the ISO/IEC 8663 international standard led by China, a genuine BCI must achieve a complete closed loop of "neural signal acquisition, precise decoding, device control, and feedback adjustment." Simply put, merely采集 EEG signals or performing simple neural stimulation does not constitute a true BCI.

 

Zhang adds that electromyography (EMG) signals and brain neural signals are fundamentally different. Some companies classifying EMG-controlled products as BCIs are essentially riding the wave and blurring the lines between the two.

 

This conceptual confusion is relatively more pronounced on the consumer side.

 

According to data from the *2025 China Brain-Computer Interface Industry Development White Paper*, most consumer products marketed as BCIs are only capable of basic EEG采集 or simple electrical stimulation.

 

They cannot achieve precise neural signal decoding or a complete control loop, representing a significant gap from true BCIs.

 

Beyond definitional issues, there has been persistent debate about which BCI pathway is the future. The industry generally classifies BCIs into four types based on the degree of invasiveness: invasive, semi-invasive, interventional, and non-invasive.

 

Zhang believes that each technical route has its own pros and cons, with no absolute superiority. From an engineering standpoint, each route must overcome different core challenges. Some focus on achieving lightweight, unobtrusive devices, improving sampling frequency, and reducing impedance, while others focus on validating long-term safety post-implantation.

 

In Zhang's view, the root of these debates is that humanity's understanding of the brain is still extremely rudimentary.

 

He described it to TONACEA as follows: currently, scientists can accurately map only about 2,000 neural connections. Compared to the vast network of 86 billion neurons, this is like trying to investigate the entire social network of a city with millions of people, but only understanding the connections within a single office.

 

Therefore, Zhang believes that whether in overseas cutting-edge exploration or at leading domestic companies, there is no absolute dimensionality advantage at the fundamental scientific level. Everyone is making slow progress from the same starting point. This also means there is no "god-like" technical route for BCIs, only solutions adapted to specific scenarios.

 

TONACEA 03: Chinese BCI Goes Global – Already Ahead

 

While external attention focuses on domestic financing and technological breakthroughs, a less-noticed trend is rewriting the global BCI landscape: the pace of international expansion by Chinese companies is far faster, more stable, and more successful than commonly perceived.

 

Unlike the long and challenging globalization path for innovative drugs, Chinese BCIs have been going global almost since the early stages of industrialization.

According to Zhang, OY Hand's international expansion has been ongoing for many years, with its products covering over 100 countries and regions. For the past two years, overseas revenue has accounted for 60% of total revenue, consistently exceeding domestic revenue.

 

This "early globalization" is no accident. The core competitiveness of BCIs lies in the combination of medical device technology and engineering capabilities.

 

Chinese manufacturing holds inherent advantages in supply chains, cost control, and delivery efficiency.

 

At the same time, while overseas markets have higher entry barriers and are more fragmented, they offer more favorable pricing and profit margins.

Rehabilitation, disability assistance, and neuromodulation are universal, inelastic needs with almost no geographical differences.

 

OY Hand's intelligent bionic hand has directly broken the long-standing monopoly of two overseas companies. Its rehabilitation exoskeleton is a world-first innovation, with no direct competitors in the international market. In Thailand, the company is collaborating with the Charoen Pokphand Group and a royal hospital to advance brain function assessment and neurological rehabilitation. Mature channels and certification systems are already in place in Europe, the US, the Middle East, and Southeast Asia.

 

This international success has given the company confidence to navigate domestic market cycles and has solidified the position of Chinese BCIs on the global stage.

 

Currently, the domestic BCI industry is experiencing crucial breakthroughs, with industrialization and commercialization accelerating. Notably, NeuroXess has obtained the world's first Class III medical device registration certificate for a BCI, a landmark achievement filling a global gap in the compliant commercialization of implantable medical-grade BCIs. Simultaneously, alongside OY Hand, leading domestic companies including TiGeR, NeuroXess, SceneRay, and BrainCo are continuously deepening their efforts in the field, accelerating breakthroughs and fostering a healthy pattern of clustered development and parallel progress across multiple tracks.

 

Domestic policy support is also intensifying. The 2026 Government Work Report explicitly mentioned "brain-computer interfaces" for the first time, designating them as one of the future industries to be cultivated, on par with quantum technology and 6G. Concurrently, the NMPA has issued the first relevant medical device standards, the National Healthcare Security Administration has added related pricing items, multiple government departments are guiding capital support, and cities including Beijing, Guangzhou, and Shenzhen are building platforms to improve the industrial ecosystem.

 

However, as commercialization accelerates, the industry will face deeper challenges: regulation and safety.

 

Medical-grade BCIs fall under Class III medical devices. With few precedents in China, approval standards must be established step by step through communication.

Even more critical is long-term safety. Zhang does not shy away from the risks: if the industry experiences a serious adverse event, it could trigger regulatory and public scrutiny tightening.

 

Perhaps technology is not always about moving as fast as possible. Progressing through trial and error, advancing with stability, will lead to a more sustainable path.

 

TONACEA Summary

 

In 2026, BCIs have suddenly taken center stage. Numerous companies have entered the field, and research results are emerging one after another, bringing new diagnostic and therapeutic directions to challenging conditions such as aphasia, paralysis, and blindness.

 

However, the industry is still in its early stages. Approved commercial products are few, and humanity's exploration of the brain's mechanisms remains shallow. Widespread adoption is still a long way off.

 

Asked about the industry's direction over the next 3 to 5 years, Zhang believes people tend to overestimate what can be achieved in 3 years, yet underestimate the miracles possible in 10.

 

He judges that different technological pathways for BCIs will move from competition toward convergence. Invasive and non-invasive approaches will integrate at the algorithm and model level, leading to the creation of newer, safer, and more efficient forms. Clinical evidence will continue to accumulate, more products will be approved, and commercialization will accelerate.

 

As the industry progresses steadily through integration and iteration, Chinese BCIs will, through this process, truly move to the center of the global stage.