By Echo Wang and Joey Roulette
Feb 5 (Reuters) - Democratic U.S. senators on Thursday urged the Pentagon to conduct an immediate review of SpaceX amid allegations that Chinese investors have secretly acquired stakes in the closely held rocket maker, citing potential national security risks, according to a letter seen by Reuters.
Senators Elizabeth Warren and Andy Kim wrote to Defense Secretary Pete Hegseth, expressing concern that Chinese investment in SpaceX could present "a national security threat, potentially jeopardizing key military, intelligence, and civilian infrastructure."
The lawmakers cited media reports and court testimony suggesting that investors with ties to China routed funds through entities in the Cayman Islands and the British Virgin Islands to mask purchases of SpaceX shares.
Founded by Elon Musk, the world's richest man, SpaceX plays a central role in U.S. national security infrastructure, launching military and intelligence satellites and operating its Starlink communications network, which is used by the Pentagon and to support Ukraine's defense.
The senators warned that any Chinese ownership could trigger U.S. rules governing foreign ownership, control or influence, known as FOCI, given the potential exposure of sensitive information or technologies.
The letter asks the Department of Defense to disclose the extent of any Chinese ownership, assess whether SpaceX is subject to FOCI mitigation requirements, and determine 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, which Musk has described as “the most ambitious, vertically integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile communications, and the world’s foremost real-time information and free speech platform,” adds to the immediacy of questions about Chinese investment in the company, the senators argue.
(Reporting by Echo Wang in New York; Editing by Stephen Coates)
((e.wang@thomsonreuters.com))