Democratic senators Elizabeth Warren and Andy Kim sent a letter to U.S. Defense Secretary Pete Hegseth on 5/2, expressing concern that "secret capital flows from China" into SpaceX could pose a "national security threat, potentially endangering key military, intelligence, and civilian infrastructure." The senators alleged that China-linked investors funneled money through entities in the Cayman Islands and British Virgin Islands to obscure their acquisition of shares in SpaceX, the aerospace company founded by billionaire Elon Musk.
SpaceX plays a central role in U.S. national security infrastructure. The company handles military and intelligence satellite launches and operates the Starlink satellite internet network. This technology is widely used by the Pentagon and serves as a backbone for the Ukrainian military.
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SpaceX's Falcon 9 rocket launched at Cape Canaveral, Florida, U.S. on 14/2/2025. Photo: Reuters |
SpaceX's Falcon 9 rocket launched at Cape Canaveral, Florida, U.S. on 14/2/2025. Photo: Reuters
The senators warned that any level of China-linked ownership in SpaceX could trigger U.S. regulations on foreign ownership, control, or influence (FOCI). This is due to the risk of sensitive information or technology exposure.
The two senators asked the Pentagon to: clarify information on the extent of Chinese investor ownership in SpaceX, if any; assess whether SpaceX falls under FOCI control measures; and determine if foreign investments require review by the Committee on Foreign Investment in the U.S. (CFIUS). They requested a response from the U.S. Department of Defense by 20/2.
SpaceX and the Pentagon have not commented on the information.
Senators believe clarifying questions about Chinese investment in SpaceX is more urgent following the company's acquisition of xAI. This company, also founded by Elon Musk, specializes in artificial intelligence (AI). The U.S. billionaire described SpaceX's acquisition of xAI as "the most ambitious innovation engine, both on and off Earth," combining AI, rockets, space-based internet, direct-to-mobile communication, and a real-time information and free speech platform.
By Thanh Danh (According to Reuters)
