China takes on Neuralink, makes brain computer chip like Elon Musk

China has approved NEO, the world's first commercially cleared invasive brain implant. Designed for certain patients with paralysis caused by spinal cord injuries, the chip aims to help them regain movement and perform everyday tasks.

In Short

• China approved the world's first commercially cleared invasive brain-computer interface
• The chip NEO uses eight sensors placed on the dura mater above brain tissue
• The device targets adults with four-limb paralysis retaining limited arm function

The US and China are already competing in AI, semiconductors and electric vehicles. Now, that rivalry has reached the human brain. And this time, China appears to have taken an early lead. The country has approved the world's first commercially cleared invasive brain-computer interface (BCI), putting it ahead of Elon Musk's Neuralink in the fast-growing brain-chip industry. The device, called NEO, was developed by Neuracle Technology in partnership with Tsinghua University. The chip has been designed to help people with paralysis regain movement.

The approval of using Neo commercially was granted in March by China's National Medical Products Administration for patients aged 18 to 60 who have paralysis in all four limbs caused by spinal cord injuries but still retain some arm function.

How does the chip work?

Unlike Neuralink's N1 implant, which places electrodes directly into the brain's cortex, NEO uses a less invasive approach. Eight sensors are positioned on the dura mater, the protective membrane that covers the brain, reducing some of the risks associated with deeper brain penetration. According to reports, this design may have helped the device move through the regulatory approval process more quickly.

Unlike Neuralink's N1 implant, which places tiny electrodes – these are small conductive wires that pick up electrical signals from brain cells– directly into the brain's outer layer, known as the cortex, NEO uses a less invasive approach.

Instead of penetrating the brain tissue, the coin-sized implant NEO places eight sensors on the dura mater, the protective membrane that surrounds the brain. These sensors collect the brain signals and transmit them to a computer, which converts those signals into commands for a soft robotic glove.

The system is designed to help patients regain hand movement and perform everyday tasks.

Because NEO does not need to be inserted deep into the brain, it carries a lower risk of complications such as bleeding, tissue damage and long-term scarring. According to reports, this simpler design may also have helped the device move through the regulatory approval process more quickly.

One of the first recipients of Neo

One of the first recipients of the implant was Dong Hui, a 39-year-old man from Henan province who was paralysed from the neck down after a car accident six years ago. According to MIT Technology Review, Dong underwent surgery in November 2024 as part of a clinical trial and then spent nearly a year in rehabilitation. Last October, he was able to hold a pen and write his name for the first time since his accident, a moment he later described as both emotional and hard to believe.

China's ambitions, however, extend beyond a single device. The country has reportedly identified brain-computer interfaces as a strategic technology area in its latest five-year plan and has publicly stated its goal of becoming a global leader in the sector by the end of the decade. Days after NEO received approval, the device was assigned a code within China's health insurance system, an important step towards future reimbursement and wider adoption.

Meanwhile, Chinese companies are also experimenting with combining BCIs and artificial intelligence. Shanghai-based NeuroXess has conducted early trials in which a patient with paralysis used thought alone to move a computer cursor and control household appliances. The company has also developed a large language model capable of decoding Mandarin speech signals in real time at up to 300 characters per minute, potentially opening up new possibilities for people who have lost the ability to speak.

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