Democratic US senators on Thursday asked the Pentagon to urgently review SpaceX following allegations over Chinese-linked investors.
This investigation move came amid the allegations that Chinese investors secretly acquired stakes in this private aerospace company, raising concerns about national security.
Senators Elizabeth Warren and Andy Kim wrote to Defense Secretary Pete Hegseth, urging the Department of Defense to investigate whether Chinese ownership in SpaceX could threaten US military and intelligence operations.
The lawmakers cited media reports and court testimony suggesting that investors with ties to China routed money through offshore entities in the Cayman Islands and the British Virgin Islands. They claimed this may have been done to conceal the true source of funds used to buy SpaceX shares.
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SpaceX, founded by billionaire Elon Musk, is one of the most important private contributors supporting US national security. The company launches satellites for the Pentagon and US intelligence agencies and operates the Starlink satellite communications network. Starlink is used by the US military during war. It plays a key role in supporting Ukraine’s defense against Russia.
Because of this deep involvement, the senators warned that any level of Chinese ownership could expose sensitive technologies or information.
“Foreign ownership, control, or influence over SpaceX could create serious risks if Chinese ownership is involved,” Warren and Kim wrote.
They asked the Pentagon to disclose whether any Chinese investors hold stakes in SpaceX and to assess whether the company falls under US Foreign Ownership, Control, or Influence (FOCI) rules. These rules are designed to protect national security when foreign entities have access to sensitive defense programs.
The senators also requested that the Pentagon determine whether any foreign investments in SpaceX should be reviewed by the Committee on Foreign Investment in the United States, or CFIUS. They asked for a response by February 20.
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The Pentagon oversees US military operations and is responsible for safeguarding defense technologies and infrastructure. For satellite launch, space capabilities development, and secure communications maintenance, it depends upon SpaceX.
Any foreign influence over these partners is closely scrutinized.
The senators said concerns have grown more urgent following SpaceX’s recent acquisition of xAI, another company founded by Musk. Musk has described xAI as “the most ambitious, vertically integrated innovation engine on (and off) Earth,” combining artificial intelligence, rockets, space-based internet, and communications platforms.
Warren and Kim said this expanded scope makes transparency about ownership even more important.
“Given SpaceX’s growing reach across critical technologies, it is essential to know who may have influence over the company,” they wrote.
Court records from last year support some of the senators’ concerns. A Delaware court upheld a fund manager’s decision to remove a Chinese investor from a fund that was created to buy SpaceX shares.
According to filings, fund manager Iqbaljit Kahlon admitted Leo Investments, a publicly traded Chinese company, as a limited partner in the fund. SpaceX later told Kahlon that the fund could not purchase shares if Leo Investments remained involved.
Kahlon removed the Chinese investor and returned its $50 million investment. The court backed his decision.
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The fund was set up as a special-purpose vehicle (SPV). These vehicles allow multiple investors to pool money to buy shares in private companies like SpaceX. SPVs make it easier to trade smaller portions of stock without forcing the company to manage many individual shareholders.
The senators said the case highlights how Chinese investors could potentially gain exposure to sensitive US companies through indirect structures.
“This raises serious questions about whether existing safeguards are sufficient,” they wrote.
SpaceX was not immediately available for comment.
SpaceX has long maintained close ties with the Pentagon. As a cornerstone of US space and missile defense strategy, the company has won billions of dollars in defense contracts. Falcon rockets and SpaceX’s Starlink network are considered critical assets.
For now, no official findings have been released. But the request from two senior lawmakers increases pressure on the Pentagon to closely examine SpaceX’s ownership and ensure that US national security interests remain protected.
