Elon Musk’s SpaceX has reportedly allowed Chinese investors to buy stakes in the company through offshore hubs, raising concerns about national security. The company’s CFO and a major investor testified about this practice during a recent corporate dispute.
Concerns arise from the potential for foreign adversaries to access sensitive military technology and intelligence. While passive investments are acceptable, the Trump administration worries about concealed strategies used by countries like China to gain leverage in strategic industries.
There is no public record of SpaceX undergoing a formal review by the Committee on Foreign Investment in the United States (CFIUS). Reports suggest that Chinese investors are using special-purpose vehicles to invest in Musk-controlled companies.
