Democratic senators are pressing the Pentagon to scrutinize SpaceX over reports that Chinese-linked investors may have quietly bought into the company, raising alarms about potential exposure of critical U.S. defense assets.
According to Reuters, Sens. Elizabeth Warren of Massachusetts and Andy Kim of New Jersey sent a letter to Defense Secretary Pete Hegseth demanding an immediate review of SpaceXs ownership structure in light of allegations that Chinese investors have secretly acquired stakes in the private aerospace giant.
The lawmakers warned that Chinese investment in the firm could pose a national security threat, potentially jeopardizing key military, intelligence, and civilian infrastructure, and urged the Department of Defense to move quickly in assessing the risks.
Their concerns rest on media reports and court testimony indicating that investors with ties to China allegedly funneled money through offshore entities in the Cayman Islands and the British Virgin Islands to conceal purchases of SpaceX shares. Such a structure, if confirmed, would fit a familiar pattern in which foreign capital is routed through opaque jurisdictions to evade U.S. scrutiny, a tactic that has long troubled national security hawks and advocates of tighter foreign investment controls.
SpaceX, founded by billionaire entrepreneur Elon Musk, has become deeply embedded in the nations security architecture, launching military and intelligence satellites and operating the Starlink communications network. Starlink is already used by the Pentagon and has played a high-profile role in supporting Ukraines defense, making any foreign leverage over the company a matter of strategic concern rather than a routine corporate governance issue.
The senators cautioned that even limited Chinese ownership could trigger U.S. rules on foreign ownership, control, or influenceknown in the defense world as FOCIbecause of the potential access to sensitive information or advanced technologies. They pressed the Pentagon to determine whether SpaceX is already subject to FOCI mitigation requirements and, if not, whether such measures should be imposed to insulate U.S. defense programs from foreign interference.
Their letter calls on the Department of Defense to disclose the extent of any Chinese ownership in SpaceX and to clarify what safeguards, if any, are in place to prevent foreign actors from gaining insight into classified or export-controlled systems. In addition, the senators want the administration to assess whether these investments should be reviewed by the Committee on Foreign Investment in the United States (CFIUS), the interagency body tasked with policing foreign acquisitions that may threaten national security.
The lawmakers set a firm deadline, requesting a formal response from the Pentagon by February 20, underscoring the urgency they attach to the matter. While Democrats have often been slow to confront the national security implications of globalized capital, this move reflects a growing bipartisan recognition that Beijings economic reach cannot be divorced from its strategic ambitions.
Adding to the stakes is SpaceXs recent acquisition of Musks artificial intelligence venture, xAI, which the billionaire has described as the most ambitious, vertically integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile communications, and the worlds foremost real-time information and free speech platform. By folding xAI into SpaceX, Musk has effectively concentrated a vast array of cutting-edge technologiesmany with dual-use military and civilian applicationsunder one corporate roof.
The senators argue that this consolidation only heightens the urgency of clarifying whether Chinese-linked capital has any foothold in the company. With AI, space launch capabilities, satellite internet, and real-time information platforms now intertwined, the potential for foreign influence or data access becomes far more consequential than a routine portfolio investment in a tech startup.
For conservatives who have long warned about the dangers of allowing adversarial regimes to buy into critical American industries, the episode underscores the need for stricter enforcement of existing laws and more robust oversight of complex offshore investment structures. It also raises broader questions about whether Washington is prepared to defend the integrity of its defense industrial base in an era when capital moves at the speed of light and hostile powers exploit every legal and regulatory gap.
As the Pentagon weighs its response, the case will test whether the Biden administration is willing to confront the national security risks posed by Chinese money in high-tech sectors that underpin U.S. military strength.
With SpaceX at the center of Americas launch capabilities and satellite communicationsand now at the nexus of AI and free-speech platformsthe pressure is mounting for defense officials to provide clear answers on who ultimately holds influence over one of the countrys most strategically vital companies.
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