{"id":462106,"date":"2026-02-06T10:46:08","date_gmt":"2026-02-06T10:46:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/462106\/"},"modified":"2026-02-06T10:46:08","modified_gmt":"2026-02-06T10:46:08","slug":"pentagon-reportedly-asked-to-probe-spacex-for-potential-chinese-ownership-seen-as-a-national-security-threat","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/462106\/","title":{"rendered":"Pentagon reportedly asked to probe SpaceX for potential Chinese ownership seen as a ‘national security threat’"},"content":{"rendered":"

Democratic US senators have reportedly urged the Pentagon to conduct an immediate review of SpaceX amid allegations that Chinese investors have secretly acquired stakes in the closely held rocket maker.<\/p>\n

Chinese investment in Elon Musk’s company SpaceX has been cited as a “national security threat”, according to a letter from senators Elizabeth Warren and Andy Kim, seen by Reuters.<\/p>\n

Testimony from a SpaceX investor<\/a> that was unsealed in October last year suggests that the company knew about potential Chinese investment since 2015.<\/p>\n

The Democratic senators wrote to Defense Secretary Pete Hegseth, expressing concern that Chinese investment in SpaceX is “potentially jeopardizing key military, intelligence, and civilian infrastructure”.<\/p>\n

In the letter, court testimony is cited suggesting investors with ties to China routed funds through entities in the Cayman Islands and the British Virgin Islands to mask purchases of SpaceX shares.<\/p>\n

\"A<\/p>\n

SpaceX is the world’s most valuable private company. (Reuters\/ Joe Skipper)<\/p>\n

SpaceX, the world’s most valuable private company, plays a central role in US national security infrastructure, launching military and intelligence satellites and operating its Starlink communications network, which is used by the Pentagon.<\/p>\n

Currently, SpaceX has secured deals for 28 planned National Security Space Launch (NSSL) missions until 2029.<\/p>\n

The ABC has contacted the US Department of Defense for comment.<\/p>\n

SpaceX knew about Chinese investors<\/p>\n

According to unsealed testimony from a SpaceX investor, the company knowingly accepted the Chinese investment, and internal discussions about the foreign investment started as early as 2015.<\/p>\n

The testimony came from litigation in Delaware between two SpaceX investors. Documents from the litigation were sealed until ProPublica and lawyers from the Reporters Committee for Freedom of the Press launched an effort to make it public<\/a>.<\/p>\n

Iqbaljit Kahlon is a major SpaceX investor who was a part of the deposition, and in the testimony, he admits to “know plenty of Chinese investors who invested in SpaceX through funds, and occasionally even directly”.<\/p>\n

“They obviously have Chinese investors to be honest in the fund, but also directly on the cap table as well,” he said in his testimony.<\/p>\n

A cap table is also known as a company’s capitalisation table, which is a list of its shareholders.<\/p>\n

He said if the investment is passive, SpaceX believes that is “generally okay” but admitted Chinese investment can be “more pain than it’s worth”.<\/p>\n

SpaceX has not responded to the letter sent by the Democrats, nor has it previously given comment on Chinese investment.<\/p>\n

The company’s full ownership structure is kept secret.<\/p>\n

Sensitive information at risk<\/p>\n

The two senators warned that any Chinese ownership could trigger US rules governing foreign ownership, control or influence, known as FOCI, given the potential exposure of sensitive information or technologies.<\/p>\n

The letter asks the Department of Defense to disclose the extent of any Chinese ownership and assess whether SpaceX is subject to FOCI mitigation requirements.<\/p>\n

There was also a request to determine whether foreign investments should be reviewed by the Committee on Foreign Investment in the United States.<\/p>\n

\"Donald<\/p>\n

Donald Trump signed a policy in 2025 that called China a foreign adversary. (Reuters: Nathan Howard)<\/p>\n

The America First Investment Policy<\/a>, launched in February 2025 by US President Donald Trump, states “investment at all costs is not always in the national interest”.<\/p>\n

The policy lists the People’s Republic of China (PRC) as a foreign adversary.<\/p>\n

“[China] systematically direct and facilitates investment in United States companies and assets to obtain cutting-edge technologies, intellectual property, and leverage in strategic industries,” the policy states.<\/p>\n

SpaceX’s recent acquisition of xAI, which Mr Musk has described as “the most ambitious, vertically integrated innovation engine on (and off) Earth,” adds to the immediacy of questions about Chinese investment in the company, the senators argue.<\/p>\n

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