Democratic senators call for immediate Pentagon probe into alleged secret Chinese investment in Elon Musk’s SpaceX, citing major national security risks.
WASHINGTON: Democratic US senators have urged the Pentagon to immediately review SpaceX. They cited allegations that Chinese investors have secretly acquired stakes in the closely held rocket maker.
Senators Elizabeth Warren and Andy Kim wrote to Defense Secretary Pete Hegseth expressing grave concern.
They warned the investment could present a national security threat, jeopardising key military and civilian infrastructure.
The lawmakers cited media reports and court testimony suggesting investors with ties to China routed funds through entities in the Cayman Islands and the British Virgin Islands. This was allegedly done to mask purchases of SpaceX shares.
Founded by Elon Musk, SpaceX plays a central role in US national security infrastructure. It launches military and intelligence satellites and operates the Starlink communications network used by the Pentagon and Ukraine.
The senators warned any Chinese ownership could trigger US rules governing foreign ownership, control or influence, known as FOCI. This is due to the potential exposure of sensitive information or technologies.
The letter asks the Department of Defense to disclose the extent of any Chinese ownership. It also requests an assessment of whether SpaceX is subject to FOCI mitigation requirements.
Furthermore, it asks the Pentagon to determine if the foreign investments should be reviewed by the Committee on Foreign Investment in the United States. The senators requested a response by February 20.
The senators argue SpaceX’s recent acquisition of xAI adds to the urgency of the questions. Musk has described xAI as “the most ambitious, vertically integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile communications, and the world’s foremost real-time information and free speech platform.”
