Warren, Kim Warn That Undisclosed Investments in SpaceX by Chinese Interests May Threaten National Security, Raise Questions about Compliance with National Security Law

Warren, Kim Warn That Undisclosed Investments in SpaceX by Chinese Interests May Threaten National Security, Raise Questions about Compliance with National Security Law

SpaceX receives billions in defense contracts; "exercises significant control" over who can buy into the company

"The mere proposition that an adversary nation such as China could have leverage and influence over a company such as SpaceX, one that underpins our national security apparatus, is an unacceptable risk."

Text of Letter (PDF)

Washington, D.C. - U.S. Senators Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, and Andy Kim (D-N.J.), Ranking Member of the Subcommittee on National Security and International Trade and Finance, wrote to Secretary of Defense Pete Hegseth, asking him to clarify the Department of Defense's (DoD) involvement with SpaceX and its knowledge of potential national security threats in the wake of reports that the company has significant undisclosed investments from Chinese interests.

"These ties could pose a national security threat, potentially jeopardizing key military, intelligence, and civilian infrastructure, and are at odds with the administration's policies on foreign investment from countries of concern in strategic industries," wrote the senators.

Last March, a ProPublica investigation found Chinese investors were "quietly funneling tens of millions of dollars" into SpaceX while keeping their identities a secret. One SpaceX investor, who is "close to the company's leadership," admitted to routing "money from China through the Caribbean to buy stakes in SpaceX multiple times" and testified he knew of other Chinese investors who owned shares of SpaceX.

Experts have warned that court testimony indicates "SpaceX has more substantial ties to China than are publicly known and is working to mask them from U.S. regulators." These reports suggest that some Chinese investors are directly purchasing company stock and are listed "directly on the cap table," a list of the company's primary shareholders.

"These reports raise serious national security concerns, as the Trump Administration's own investment policy details risks from 'foreign adversaries, including [China],'" wrote the senators.

As a defense contractor, SpaceX is a major part of the U.S. military and reconnaissance architecture, raking in billions of dollars in contracts from DoD and the National Reconnaissance Office (NRO), often acting as the sole source provider for critical technology and services.

"The mere proposition that an adversary nation such as China could have leverage and influence over a company such as SpaceX, one that underpins our national security apparatus, is an unacceptable risk," said the lawmakers.

The Trump administration has concluded that investment by Chinese interests into U.S. companies could pose serious national security risks. To address these potential risks, the U.S. government has safeguards in place, including the Committee on Foreign Investment in the United States (CFIUS), which has the authority to investigate, review, and impose penalties on companies with foreign investors that could pose national security risks. The DoD also requires contractors to identify and mitigate risks associated with foreign investment under Foreign Ownership, Control, or Influence (FOCI) guidelines.

"In the case of SpaceX, we have concerns that Chinese investors could potentially gain access to nonpublic information about the company, including 'details on its contracts or supply chain,' giving China access to information and technology that could undermine US national security," said the senators.

The senators also highlighted concerns about potential conflicts of interest created by Elon Musk's significant business interests in China, where he has "secured major tax breaks and regulatory victories in the country." These conflicts even led President Trump to reportedly block Mr. Musk from receiving a highly classified briefing at the Pentagon on China, saying, "Elon has a lot of business in China, and he has good relations there, and this briefing just wasn't the right thing."

There is no publicly available information regarding what percentage of SpaceX is owned by Chinese investors or investors from other U.S. adversaries, nor is there any indication of whether these investors have large enough investments to influence the company's governance. SpaceX, as a private company, exercises significant control over who can purchase its stock.

"[These investments] raise serious concerns about the company's compliance with federal national security laws, potentially jeopardizing the more than $3 billion in DoD contracts the rocket company has been awarded," said the lawmakers.

This week, SpaceX announced it would acquire xAI, another Musk-owned government contractor, to create "the most ambitious, vertically integrated innovation engine on (and off) Earth."

The senators asked Secretary Hegseth to, by February 18, 2026, provide answers regarding whether DoD was aware of the scope of Chinese investment in SpaceX, explain how SpaceX's participation as a government contractor is in line with the Trump Administration's "America First Investment Policy," and provide any national security reviews that have been conducted on SpaceX.

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