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Senators Press Pentagon to Review SpaceX Over Alleged Chinese Investment

The request sets a mid-February deadline for the Pentagon to disclose any Chinese stakes in SpaceX, triggering potential FOCI or CFIUS review.

Overview

  • Senators Elizabeth Warren and Andy Kim sent a Feb. 5 letter to Defense Secretary Pete Hegseth seeking an immediate review of SpaceX and a public accounting by mid-February.
  • The letter cites ProPublica reporting and court testimony indicating Chinese-linked funds were routed through Cayman Islands and British Virgin Islands entities to buy SpaceX shares, with one investor describing Chinese owners on the cap table.
  • An unsealed deposition reported by media indicates internal discussions about Chinese investment at SpaceX date back to 2015, while the company’s full ownership structure remains undisclosed.
  • The senators asked the Defense Department to assess whether SpaceX falls under Foreign Ownership, Control, or Influence rules and whether investments should be examined by CFIUS.
  • Lawmakers underscore SpaceX’s central role in U.S. national security, including launches and Starlink services, and say the company’s acquisition of xAI heightens urgency around potential foreign access to sensitive information.