The Pentagon requested that SpaceX be examined for possible Chinese ownership

US Senators Urge Pentagon Review of SpaceX Over Alleged Chinese Investment Risks

Two Democratic US senators have called on the Pentagon to conduct an immediate national security review of SpaceX, citing reports that Chinese investors may have quietly acquired stakes in the Elon Musk-founded rocket company through offshore entities.

In a letter to Defense Secretary Pete Hegseth, Senators Elizabeth Warren and Andy Kim warned that any undisclosed Chinese ownership in SpaceX could pose “a national security threat, potentially jeopardizing key military, intelligence, and civilian infrastructure,” according to correspondence seen by Reuters.

Concerns over hidden stakes

The lawmakers referenced media reports and court testimony suggesting that investors with ties to China may have routed funds through the Cayman Islands and the British Virgin Islands to mask purchases of SpaceX shares.

SpaceX is privately held and does not publicly disclose detailed ownership structures.

The senators cautioned that such arrangements could trigger US regulations related to Foreign Ownership, Control or Influence (FOCI), which apply to companies handling sensitive government and defense contracts.

Critical role in US security

SpaceX plays a central role in US national security operations. The company:

• Launches military and intelligence satellites

• Operates the Starlink communications network

• Provides connectivity services used by the Pentagon and Ukraine’s defense forces

Given this footprint, the senators warned that foreign ownership could expose sensitive technologies or classified information.

Requests to the Pentagon

The letter asks the Department of Defense to:

• Disclose the extent of any Chinese ownership in SpaceX

• Determine whether the company is subject to FOCI mitigation rules

• Consider whether foreign investments should be reviewed by the Committee on Foreign Investment in the United States (CFIUS)

The senators requested a response by February 20.

Added scrutiny after xAI deal

The lawmakers also pointed to SpaceX’s recent acquisition of xAI, Musk’s artificial intelligence venture, which he has described as a vertically integrated platform combining AI, rockets, satellite internet, and communications technologies.

They argued that the expanded scope of operations makes questions around foreign investment even more urgent.

As SpaceX’s role in both defense and emerging AI infrastructure grows, scrutiny from Washington is likely to intensify over who ultimately holds influence in one of America’s most strategically important tech companies.