Two senior US senators have urged the Pentagon to immediately investigate SpaceX over allegations of hidden Chinese ownership. The request raises serious national security concerns due to SpaceX’s sensitive government role.
The lawmakers warned that undisclosed foreign investment could threaten critical military, intelligence, and civilian infrastructure. As a result, they called for urgent scrutiny of the company’s ownership structure.
Lawmakers Flag National Security Risks
Senators Elizabeth Warren and Andy Kim sent a formal letter to the US defence secretary. In the letter, they stressed that any Chinese investment could pose a national security threat.
They argued that SpaceX’s access to sensitive technologies demands strict oversight. Therefore, even indirect foreign ownership requires immediate review.
Alleged Use of Offshore Structures
The senators cited reports suggesting investors linked to China routed funds through offshore entities. These entities reportedly included locations such as the Cayman Islands and British Virgin Islands.
According to the claims, these structures helped mask purchases of SpaceX shares. Consequently, the true ownership trail may have remained hidden.
Such arrangements raise concerns about transparency. They also complicate enforcement of US foreign ownership rules.
SpaceX’s Strategic Role Raises Stakes
Founded by Elon Musk, SpaceX plays a vital role in US national security operations. The company launches military and intelligence satellites regularly.
In addition, its Starlink network supports defence communications. The system also assists Ukraine’s defence operations.
Because of this involvement, any foreign influence could expose sensitive information. Therefore, lawmakers see the issue as urgent.
Foreign Ownership Rules Come Into Focus
The senators warned that Chinese stakes could trigger foreign ownership and influence regulations. These rules are commonly known as FOCI requirements.
FOCI rules exist to prevent foreign access to classified technology. They also protect strategic decision-making from outside influence.
The letter requested a full disclosure of any Chinese ownership. It also asked whether mitigation measures are already required.
Call for Broader Federal Review
Lawmakers further urged a review by the Committee on Foreign Investment in the United States. This committee examines foreign investments for security risks.
They asked the defence department to determine whether such a review is necessary. A formal response was requested by February 20.
Past Court Case Adds Weight
Concerns intensified due to a previous court decision involving SpaceX shares. A fund manager removed a Chinese investor from a SpaceX-focused fund.
The investor had committed $50 million. However, the investment was returned after SpaceX objected.
The fund used a special-purpose vehicle to pool investments. Such vehicles allow multiple investors to hold private company shares.
Recent Expansion Raises Fresh Questions
SpaceX’s recent acquisition of xAI added urgency to the concerns. Lawmakers argued that expanded capabilities increase potential exposure.
The combined operations now span rockets, artificial intelligence, and satellite communications. As a result, oversight becomes even more critical.
What Happens Next
The Pentagon must now assess ownership risks carefully. Lawmakers expect clarity on whether foreign influence exists.
If confirmed, regulatory action could follow. Until then, scrutiny of SpaceX’s ownership will remain intense.
