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US Senators Demand Probe Into SpaceX Over Alleged Chinese Investor Links

Two US Democratic senators have urged the Department of Defense to investigate SpaceX over allegations that Chinese investors have secretly acquired stakes in the company. They cited unsealed court records and an investigation revealing the potential investments, which they argue pose a significant national security threat. The senators emphasized the risk given SpaceX's billions in DOD contracts, including a key launch service agreement. They have requested a response from the Defense Secretary detailing actions to address these security concerns by mid-February.

Key Points: Senators Warren, Kim Seek DOD Probe Into SpaceX Chinese Ties

  • Senators cite secret Chinese stakes via offshore accounts
  • Concerns over SpaceX's key DOD contracts
  • Probe follows unsealed court records, investigation
  • Risk to military and intelligence infrastructure cited
  • DOD asked to respond by February 18
2 min read

US senators call for a probe into Elon Musk-led SpaceX for potential Chinese links

US senators call for a Defense Department review of SpaceX over national security concerns regarding alleged secret Chinese investments.

"The mere proposition that an adversary nation such as China could have leverage and influence over a company such as SpaceX... is an unacceptable risk. - Senators Warren & Kim"

New Delhi, Feb 7

Two US Democratic senators, Elizabeth Warren and Andy Kim, have reportedly urged the Department of Defense to conduct a review of billionaire Elon Musk-led SpaceX.

The senators alleged that Chinese investors have secretly acquired stakes in the aerospace maker, The Hill Reported.

In a letter to Defense Secretary Pete Hegseth, the legislators raised concerns about SpaceX, a major contractor for the DOD. They also cited recently unsealed court records and a ProPublica investigation from March.

"These ties could pose a national security threat, potentially jeopardising 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," the senators wrote.

A SpaceX investor, in testimony that was unsealed in October last year, shared that the company had been aware of potential Chinese investment since 2015.

As per the ProPublica report, SpaceX allows Chinese investors to buy stakes in the company through offshore accounts.

The investigation also covered SpaceX executives' decision to cancel a $50 million investment in the company's stock from a Chinese firm after news of the deal broke.

The senators said the extent to which the DOD depends on SpaceX provides even greater reason for concern. The company has billions of dollars in contracts with the department, including a $5.9 billion launch service contract, the report said.

"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," the senators wrote.

Both Warren and Kim also expressed specific concerns that the Chinese investors might use their influence to gain information about nonpublic company information to "undermine US national security."

In addition, the senators asked for Hegseth's response by February 18 to several questions about Chinese influence at SpaceX. They also sought a response to DOD's planned action to address potential security concerns related to these investments, the report said.

- IANS

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Reader Comments

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Sarah B
Interesting to see US senators finally raising this. For a country so vocal about security, it's surprising they allowed such a loophole with offshore accounts. This probe is long overdue. National security shouldn't be compromised for private capital, no matter how innovative the company is.
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Priya S
Musk's ventures are global, but this is concerning. Space tech is dual-use and highly sensitive. If China has stakes, it's not just a US problem. It affects global security. India should also review any of our tech partnerships that might have indirect links to such entities. Better safe than sorry! 🚀
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Rohit P
While the security concern is valid, this feels a bit like political posturing. Warren has been critical of big tech for years. The "offshore accounts" method is how a lot of foreign investment happens globally. The key is transparency and proper oversight, not necessarily blocking all investment.
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Ananya R
This is why Atmanirbhar Bharat is so crucial. We cannot afford to have our critical infrastructure dependent on foreign entities with questionable allegiances. Hope our policymakers are watching this case closely. Jai Hind!
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Karthik V
The report says they were aware since 2015? That's nearly a decade! If the DoD didn't have proper due diligence in place for a major contractor like SpaceX, that's a massive institutional failure. The probe should extend to how this was allowed to happen for so long.

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