Elon Musk’s Tesla has faced a strong challenge from China, forcing its electric car prices down in a bid to beat its Beijing-backed rival BYD – and now he could be fighting on a new front after China stepped up its challenge to his novel Neuralink programme.

What is Neuralink?

Neuralink was founded in 2016 by Elon Musk and a team of scientists. Its principal product, also known as Neuralink, is a chip which connects to the human brain. The technology is hoped to have a variety of applications, from supporting people with neurological conditions to interfacing with technologies in new ways.

Neuralink was first approved for human trials by the FDA last year, after a period of being tested on animals, when the device was purportedly seen being used by a monkey to play the classic Pong video game.

Earlier this year Neuralink made headlines after Noland Arbaugh, who was paralyzed as a result of a car accident, was able to play chess on his laptop by communicating with the computer through a Neuralink brain implant.

Mr Arbaugh has since reported a newfound independence, and enviable ability to multitask. Speaking to Wired in May, he said:

“It [Neuralink] makes me feel less helpless and like less of a burden. I love the fact that the people around me don’t have to wait on me so much.”

However, the technology remains in its infancy. Experts predict these kinds of brain implants remain decades away from becoming a mainstream product – if they ever do at all.

China to develop its own brain-computer interface

Although the technology is in its embryonic stages, China appears to be keen not to be left behind in what could potentially become an important sector, with lucrative medical and industrial applications, according to its proponents.

Estimates about the future value of the sector vary wildly, with one recent report cited by the WEF putting it at a projected $6.2 billion by 20230, while a report by MarketsandMarkets expects it to be worth just $506 million by 2029.

In a sign that China is taking the potential of brain-computer interface technology seriously, the government is putting together a committee of industrial and technology experts to draw up standards for the use of the devices, as per Bloomberg.

It comes as Beijing tries to encourage a drive in innovation, supporting Chinese companies competing in key sectors with subsidies, particularly its semiconductor industry, as it loses some of its traditional manufacturing clout to neighbouring Asian countries, and to the West as it moves toward onshoring.

Neucyber versus Neuralink

It comes after a Chinese company, Xinzhida Neurotechnology, unveiled its Neuralink rival, Neucyber, in April, following tests which allowed a monkey to reportedly control a robot arm using its mind.

Reuters reported the development illustrated Beijing’s desire to catch up with Neuralink and gain a foothold in the brain-computer interface sector:

“The controlling shareholder of Xinzhida Neurotechnology is the Beijing municipal government’s state asset regulator, according to corporate database Qichacha.

“While neither the scientists or Xinhua mentioned Musk’s brain-chip startup, the unveiling of this new product at the annual tech-focused Zhongguancun Forum in Beijing highlights China’s aim to catch up with Neuralink.

“This comes after the country’s Ministry of Industry and Information Technology at last year’s Zhongguancun Forum classified BCI technology as an important cutting-edge emerging technology“.

Will everyone have a brain chip in the future?

It is difficult to say whether brain-computer interfaces will take off like the iPhone, or go the way of the Metaverse. Even if the technology does deliver on all of its proponent’s ambitions, it is unclear if consumers would be willing to undergo the invasive procedure required to install it – at least as it stands today. However, it is clear the market will continue to grow in the coming years, as more firms race to develop proprietary chips.

However, optimists believe mainstream use could take off as early as the next decade. Brian Jamieson, CTO of Diagnostic Biochips told Medical Device “Even accounting for large error bars, we could see use and acceptance in the next decade,” pointing out the technology might not be as novel as it appears, with deep brain stimulation testing first approved by the FDA more than 20 years ago.

However, the technology faces significant hurdles, including our collective limited understanding of the human brain. Analysts suggest if we can get a better grasp on how exactly the brain operates, brain-computer interfaces could unlock a future hitherto considered the preserve of science fiction.