WASHINGTON, February 5, 2026, 08:25 EST
- U.S. Democratic senators asked the Pentagon to review SpaceX over allegations of hidden Chinese-linked stakes
- Lawmakers cited national security risks tied to SpaceX’s military launch work and Starlink use
- The letter asks the Defense Department to assess whether foreign-ownership rules and a CFIUS review apply
Democratic U.S. senators urged the Pentagon on Thursday to launch an immediate review of SpaceX over allegations that Chinese investors have quietly obtained stakes in the privately held rocket maker, warning it could pose a national security risk. Senators Elizabeth Warren and Andy Kim told Defense Secretary Pete Hegseth that Chinese investment could be “a national security threat, potentially jeopardizing key military, intelligence, and civilian infrastructure.” (Reuters)
The request lands on a company that sits deep inside U.S. defense plumbing. SpaceX launches military and intelligence satellites and runs its Starlink communications network, which is used by the Pentagon and to support Ukraine’s defense, the lawmakers said. (The Straits Times)
In their letter, the senators pointed to media reports and court testimony suggesting China-linked investors routed money through entities in the Cayman Islands and the British Virgin Islands to mask purchases of SpaceX shares. They asked the Defense Department to disclose any Chinese ownership, assess whether SpaceX needs safeguards under foreign-ownership rules, and determine whether the investments should be reviewed by the Committee on Foreign Investment in the United States, or CFIUS, with a response requested by February 20. (The Economic Times)
Foreign ownership, control or influence — known as FOCI — is a U.S. national-security screen used in the defense industrial base. A company is considered under FOCI when a foreign interest has the power, directly or indirectly, to influence management in a way that could expose classified work or affect performance on classified contracts, the Defense Counterintelligence and Security Agency says. (DCSA)
CFIUS is a U.S. interagency panel that reviews certain foreign investments and some real-estate deals involving foreign persons to assess potential national security effects, according to the U.S. Treasury Department. (U.S. Department of the Treasury)
xAI’s website says SpaceX announced on February 2 that it had acquired xAI, a deal the senators flagged as adding urgency to questions about who ultimately owns pieces of SpaceX. (xAI)
The hidden-ownership concern has been simmering in public reporting for months. ProPublica reported in October that a major SpaceX investor, Iqbaljit Kahlon, said in a deposition that some Chinese investors were “directly on the cap table,” and quoted Indiana University professor Sarah Bauerle Danzman warning that access to nonpublic information “would create huge risks” for national security. (ProPublica)
Any review would also be watched closely by SpaceX’s rivals for Pentagon launch work. A Congressional Research Service primer said the United States has two certified launch providers for National Security Space Launch missions — SpaceX and Boeing-Lockheed Martin joint venture United Launch Alliance — while Jeff Bezos-backed Blue Origin is still working through certification for its New Glenn rocket.
But the claims could be hard to test quickly. SpaceX is not publicly traded, and ownership can be routed through funds and offshore vehicles that obscure who is behind the money. A Pentagon review could end with no action, or it could drive tighter mitigation demands that slow deals, complicate sensitive programs, or force changes to how the company handles foreign-linked capital.
For now, the senators’ letter sets a deadline — February 20 — and throws a bright light on something the defense system usually hates to talk about: who is actually on the cap table when the contracts involve rockets, satellites and secure networks.
