U.S. Senators Flag Chinese Investment in SpaceX as National Security Concern
Senators Elizabeth Warren and Andy Kim have escalated concerns over potential Chinese ownership in Elon Musk's SpaceX, warning of national security risks. The lawmakers urged Defense Secretary Pete Hegseth to review undisclosed investments allegedly funneled through offshore entities like the Cayman Islands and British Virgin Islands.
The scrutiny follows Musk's announcement of merging SpaceX with xAI—a deal valued at $1.25 trillion. Foreign ownership could trigger FOCI regulations, which govern sensitive technology exposure. The Pentagon faces a February 20 deadline to disclose any Chinese stakes and assess mitigation requirements.