Democratic U.S. senators have called on the Pentagon to urgently review SpaceX following allegations that Chinese investors may have quietly taken stakes in the private company, raising national security concerns, according to a letter reviewed by Reuters.
Senators Elizabeth Warren and Andy Kim wrote to Defense Secretary warning that any Chinese investment in SpaceX could pose a national security risk, potentially threatening military, intelligence, and civilian infrastructure that relies on the company.
They pointed to media reports and court testimony indicating that investors linked to China may have funneled money through offshore entities in the Cayman Islands and British Virgin Islands to conceal purchases of SpaceX shares.
Founded by Elon Musk, SpaceX is deeply embedded in U.S. national security, launching military and intelligence satellites and operating the Starlink communications network used by the Pentagon and to support Ukraine’s defense.
The senators said potential Chinese ownership could trigger U.S. foreign ownership, control, or influence (FOCI) rules, given the risk of exposure to sensitive technologies or information.
Their letter asks the Department of Defense to determine whether Chinese investors hold stakes in SpaceX, assess whether FOCI mitigation is required, and decide if the investments should be reviewed by the Committee on Foreign Investment in the United States. They requested a response by February 20.
The lawmakers added that SpaceX’s recent acquisition of xAI heightens the urgency of these questions, citing Musk’s description of the combined operation as a highly integrated platform spanning AI, rockets, space-based internet, and global communications.