Looks like an eeg neural device. Lots of interesting stuff on this in terms of neural prosthesis. As suspect as the source may be, scholarly literature on the subject suggests this well within the realm of possibility.

Here's a swedish study on the eeg robot control (I haven't read this article, but the abstract suggests its approximate to the Chinese study): http://ieeexplore.ieee.org/xpl/login.jsp?tp=&arnumber=13...

Anyway, while the eeg angle for brain computer interfaces (BCI) are interesting, bandwith limits are a major issue.

Kuiken and his staff have had some success with reinnervation, which also returns some "tactile sense" capacity, but is still limited by the differing commands for input (in this case free muscle groups).

http://www.ted.com/talks/todd_kuiken_a_prosthetic_arm_that_f...

Anyway, interesting stuff. Should be fun to see where this technology goes.