Musk Allowed China to Invest in SpaceX, a Top U.S. Military Contractor

Newly revealed testimony shows that Elon Musk’s SpaceX accepted funding directly from Chinese investors despite its deep ties to the U.S. military, Victor Tangermann reported for Futurism.

Democratic lawmakers have sent a letter to Defense Secretary Pete Hegseth and NASA expressing “concerns about perceived and actual conflicts of interest” involving SpaceX. (Photo: Official SpaceX Photos Flickr) 

As ProPublica reported, SpaceX investor Iqbaljit Kahlon said during a 2024 deposition that “they obviously have Chinese investors, to be honest.”

Some of these investors are listed as shareholders, underscoring SpaceX’s financial links to a U.S. adversary and raising concerns that the company could become a hub for foreign espionage.

The revelations follow a March ProPublica report that SpaceX allows Chinese investors to buy stakes in the company through the Cayman Islands and other offshore secrecy jurisdictions.

According to Ars Technica, SpaceX has secured nearly all recent U.S. military launch contracts.

SpaceX has previously sought to avoid scrutiny over its Chinese connections. In 2021, it canceled a $50 million deal with a Chinese firm after the agreement became public, ProPublica reported.

Following the March report, Democratic lawmakers sent a letter to Defense Secretary Pete Hegseth and NASA expressing “concerns about perceived and actual conflicts of interest” involving SpaceX.

The testimony, which emerged during a corporate lawsuit in Delaware, “suggests that SpaceX may be reluctant to publicly disclose the full extent of Chinese investment into the company’s privately held ownership structure,” the letter stated.

“In light of the extreme sensitivity of SpaceX’s work for the Department of Defense and NASA, this lack of transparency raises serious questions.”