Newly obtained documents reveal that investors with ties to Chinese military contractors quietly acquired stakes in SpaceX during its private funding rounds before the company’s recent initial public offering. These details shed light on longstanding concerns about foreign involvement in companies closely linked to U.S. government defense projects.
The investor list, obtained by ProPublica, identifies more than a dozen stakeholders from China, Hong Kong, and Russia who invested in SpaceX through a U.S.-based intermediary called Tomales Bay Capital. Investments ranged from modest sums to tens of millions of dollars and occurred between 2018 and 2021. Notably, one major investor was an entity controlled by David Su, co-founder of a prominent Beijing venture capital firm, MPCi, known for backing Chinese aerospace ventures and collaborating with government initiatives.
SpaceX, founded by Elon Musk, has built much of its business on sensitive contracts for the U.S. military, including spy satellites. While Chinese investment in such sensitive industries is heavily regulated, there is no explicit ban, though the U.S. government remains wary of potential espionage or technology transfer through indirect investment. Reflecting this risk, SpaceX barred investors from China and Hong Kong from participating in its blockbuster IPO last week.
David Su’s firm MPCi has attracted scrutiny because of its involvement with Chinese satellite companies sanctioned by the U.S. for aiding Russian mercenaries and allegedly supporting attacks on U.S. forces. MPCi also collaborates with China's Ministry of Science and Technology on state-backed aerospace projects, highlighting the firm’s close connections to government efforts. However, no evidence has emerged indicating any improper activity by Su or his entities in relation to SpaceX.
The central concern among U.S. officials centers on whether these foreign investors gained access to confidential information about SpaceX’s technology or strategic plans—information critical to national security. The IPO, which made Musk the world’s first trillionaire, marked a turning point as the company adopted stricter compliance measures to prevent future foreign investment in sensitive areas.