On Thursday, two Democratic senators urged the Defense Department to launch an immediate review of Elon Musk’s SpaceX.
Senators Warn Of National Security Risks Tied To SpaceX Ownership
Sens. Elizabeth Warren (D-Mass.) and Andy Kim (D-N.J.) sent a letter to Secretary of War Pete Hegseth raising concerns that undisclosed Chinese investment in SpaceX could pose serious national security risks, reported Reuters.
The lawmakers cited reports and court testimony suggesting that investors with ties to China may have used offshore entities in the Cayman Islands and British Virgin Islands to conceal purchases of SpaceX shares.
Any level of Chinese ownership in SpaceX presents “a national security threat,” the senators wrote, warning it could jeopardize sensitive military, intelligence and civilian infrastructure.
SpaceX’s Role In US Defense Draws Scrutiny
Founded by Musk, SpaceX plays a central role in U.S. national security, launching military and intelligence satellites and operating the Starlink satellite communications network.
Starlink is used by the Pentagon and has been critical in supporting Ukraine’s defense against Russia.
Given this role, the senators warned that foreign ownership could trigger U.S. rules governing foreign ownership, control or influence, known as FOCI, which are designed to protect sensitive technologies and information.
SpaceX did not immediately respond to Benzinga’s request for comments.
Lawmakers Seek Disclosure
Warren and Kim asked the Defense Department to disclose the extent of any Chinese ownership in SpaceX and determine whether FOCI mitigation requirements apply.
They also asked to assess whether the investments should be reviewed by the Committee on Foreign Investment in the U.S. They requested a response by Feb. 20.
The lawmakers also pointed to SpaceX’s acquisition of Musk’s artificial intelligence company xAI, arguing the deal heightens concerns about potential foreign access to advanced technologies.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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