Democratic US senators Elizabeth Warren and Andy Kim have called on the Pentagon to investigate SpaceX following reports that Chinese investors may have secretly acquired stakes in the private aerospace company. In a letter to Defence Secretary Pete Hegseth, the lawmakers warned that any Chinese involvement could pose “a national security threat, potentially jeopardising key military, intelligence, and civilian infrastructure.”

The senators cited media reports and court testimony indicating that investors with ties to China may have routed funds through entities in the Cayman Islands and the British Virgin Islands to mask purchases of SpaceX shares. This has raised concerns about transparency and potential violations of US regulations governing foreign ownership, control, or influence, known as FOCI.

Founded by Elon Musk, SpaceX is integral to US national security, operating the Starlink communications network and launching military and intelligence satellites. The senators emphasized that foreign ownership could expose sensitive technologies and strategic information, particularly given SpaceX’s dual role in civilian and defence infrastructure.

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The letter requests the Department of Defence to determine the extent of any Chinese ownership, assess whether SpaceX is subject to FOCI mitigation requirements, and evaluate whether foreign investments should be reviewed by the Committee on Foreign Investment in the United States. The senators requested a response by February 20.

SpaceX’s recent acquisition of xAI, described by Musk as a “vertically integrated innovation engine” spanning AI, rockets, space-based internet, and real-time communications, adds urgency to concerns over foreign investment. The senators noted that Chinese involvement in such ventures could present additional risks given the sensitive nature of emerging technologies in both aerospace and defence sectors.

The investigation, if initiated, could have significant implications for SpaceX’s operations and future funding, particularly as the company continues to expand its role in US defence, commercial satellite launches, and global communications infrastructure. Lawmakers and national security experts are closely monitoring the situation for potential policy and regulatory action.

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