{"id":11984,"date":"2025-03-27T03:24:37","date_gmt":"2025-03-27T03:24:37","guid":{"rendered":"https:\/\/fusionmindlabs.com\/blogs\/spacex-has-secret-chinese-backdoor\/"},"modified":"2025-03-27T03:24:37","modified_gmt":"2025-03-27T03:24:37","slug":"spacex-has-secret-chinese-backdoor","status":"publish","type":"post","link":"https:\/\/fusionmindlabs.com\/blogs\/spacex-has-secret-chinese-backdoor\/","title":{"rendered":"SpaceX Has Secret Chinese Backdoor"},"content":{"rendered":"\n<\/p>\n
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According to a report by ProPublica, SpaceX, the rocket company founded by Elon Musk, has permitted Chinese investors to acquire stakes in the company, provided that the funds are channeled through the Cayman Islands or other offshore financial hubs.<\/p>\n

As a defense contractor for the Pentagon, SpaceX is involved in sensitive projects, including the development of a classified spy satellite network. The investment from China has raised concerns regarding national security, as it may grant a foreign adversary access to sensitive military technology, intelligence, or supply chains.<\/p>\n

This revelation has sparked new questions about Musk’s ties to China, particularly in light of reports that the Pentagon briefed him on a potential war with China. Musk, who has been advocating for reduced federal spending, has regularly met with Chinese Communist Party officials to discuss his business interests. Notably, Tesla’s Shanghai gigafactory produces approximately half of the company’s cars, and China accounts for a significant, albeit declining, portion of its sales.<\/p>\n

The details of SpaceX’s approach to allowing Chinese investors to buy into the company emerged during a recent corporate dispute in Delaware, through the testimony of its CFO, Bret Johnsen, and major investor Iqbaljit Kahlon. The dispute centered around a failed 2021 deal with a Chinese firm that had planned to purchase $50 million of the company’s stock.<\/p>\n

When the news of the deal became public, SpaceX executives withdrew to avoid potential issues with national security regulators. Kahlon testified in December that SpaceX considers it “acceptable” for Chinese investors to buy into the company through offshore vehicles, which can be used to maintain investor anonymity.<\/p>\n

Experts who spoke to ProPublica expressed concern that this practice may indicate that SpaceX is taking deliberate steps to conceal foreign ownership interests. The company’s motivations for doing so are unclear, and it did not immediately respond to a request for comment.<\/p>\n

While passive, non-controlling stakes from foreign investors are generally allowed, the Trump administration has stated that adversaries like China use concealed investment strategies to acquire technologies, intellectual property, and leverage in strategic industries. As a result, such investments are typically subject to review by the Committee on Foreign Investment in the United States (CFIUS).<\/p>\n

There is no public record of SpaceX undergoing a formal CFIUS review. TechCrunch has reached out to CFIUS and SpaceX to learn more about the situation.<\/p>\n

ProPublica’s reporting follows an investigation by the Financial Times, which found that Chinese investors are using special-purpose vehicles to quietly invest millions of dollars in companies controlled by Musk, including SpaceX, xAI, and Neuralink.<\/p>\n<\/div>\n\n
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