Senators Demand Pentagon Probe into Allegations of Chinese Investment in SpaceX

Democratic U.S. senators have called on the Pentagon to investigate claims that Chinese investors secretly acquired stakes in SpaceX, raising concerns about national security risks. The inquiry seeks to assess foreign ownership or control rules and evaluate potential threats to sensitive military and intelligence operations.

Amid serious national security concerns, Democratic U.S. senators on Thursday urged the Pentagon to launch an immediate review of SpaceX following allegations that Chinese investors have secretly acquired stakes in the rocket maker. The claims, contained in a letter obtained by Reuters, highlight potential risks posed by Chinese investments.

Senators Elizabeth Warren and Andy Kim expressed apprehension with Defense Secretary Pete Hegseth about Chinese investment in SpaceX, warning that it could threaten key military, intelligence, and civilian infrastructure. The contention stems from reports and testimonies that funds were routed through entities in tax havens to disguise purchases of SpaceX shares.

The inquiry also seeks to determine the reach of Chinese ownership, the applicability of U.S. FOCI rules, and potential reviews by the Committee on Foreign Investment in the United States. The urgency of the matter is underscored by SpaceX's expanding role in U.S. national security and its recent acquisition of xAI.

(With inputs from agencies.)